Which of the following would cause the IS curve to shift?
A)a change in the multiplier
B)a change in business or consumer confidence
C)an increase in autonomous tax revenue
D)All of these would shift the IS curve.

Question

Quizplus · Accepted Answer

All three options, A, B, and C can cause the IS curve to shift. 
A change in the multiplier (option A) would occur if there were changes in investment or government spending. This would cause a shift in the IS curve. 
A change in business or consumer confidence (option B) would affect consumption and investment behavior, which would lead to changes in the IS curve. 
An increase in autonomous tax revenue (option C) would impact government spending and taxes, leading to shifts in the IS curve. Therefore, all three options would cause the IS curve to shift.

Which of the Following Would Cause the IS Curve to Shift