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 by increasing consumption and investment spending. A decrease in government purchases (A), a decrease in foreign demand for domestic products (C), and a decrease in the expected future profitability of capital (D) would all decrease aggregate demand and shift the IS curve to the left.

Which of the Following Would NOT Cause the IS Curve