Which of the following will cause a shift in the IS curve?

Question

Quizplus · Accepted Answer

All of the options listed will cause a shift in the IS curve. An increase in taxes typically reduces consumer spending, shifting the IS curve to the left. An increase in government spending directly increases aggregate demand, shifting the IS curve to the right. Increases in consumer or firm confidence boost spending and investment, respectively, also shifting the IS curve to the right.

Which of the Following Will Cause a Shift in the IS