Which of the following government policy actions will result in a parallel shift of the IS-curve to the left?
A) a decrease in government purchases
B) an increase in government purchases
C) an increase in transfer payments
D) a decrease in the income tax rate
E) an increase in the income tax rate
Correct Answer:
Verified
Q3: If investment becomes more responsive to changes
Q4: If the level of government transfer payments
Q5: We can expect the IS-curve to get
Q6: Which of the following is the equation
Q7: The two major determinants of the level
Q9: Looking at the behavior of interest rates
Q10: From which of the following equations can
Q11: In which of the following years were
Q12: Which of the following will NOT cause
Q13: The IS-curve will become flatter if
A)money demand
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