The IS curve will shift to the right when which of the following occurs? A) an increase in the money supply B) an increase in government spending C) a reduction in the interest rate D) all of the above E) none of the above

Respuesta :

Answer:

e) None

Explanation:

Either an increase in the money supply or an increase in government spending affects only the LM curve, and a change in the interest rate is the result of the model, not the cause as stated in the question.