Which of the following would NOT cause the IS curve to shift to the left?
A)A decrease in government purchases
B)An increase in consumer confidence
C)A decrease in foreign demand for domestic products
D)A decrease in the expected future profitability of capital

Question

Quizplus · Accepted Answer

An increase in consumer confidence would shift the IS curve to the right, as it would increase consumption and investment spending, thus increasing the level of output and income. A decrease in government purchases (A), a decrease in foreign demand for domestic products (C), and a decrease in expected future profitability of capital (D) would all shift the IS curve to the left, as they would decrease consumption and investment spending, leading to a decrease in the level of output and income.

Which of the Following Would NOT Cause the IS Curve