Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

تمرين 7

It is possible that the interest rate might affect consumption spending. An increase in the interest rate could, in principle, lead to increases in saving and therefore a reduction in consumption, given the level of income. Suppose that consumption is, in fact, reduced by an increase in the interest rate. How will the IS curve be affected