If both government expenditure, G, and taxation, T, increase by the same amount, the IS curve will:
A)shift up.
B)shift down.
C)rotate.
D)none of the above.

Name: If both government expenditure, G, and taxation, T, increase by the same amount, the IS curve will: A)shift up. B)shift down. C)rotate. D)none of the above.
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Question

Quizplus · Accepted Answer

An increase in both government expenditure and taxation will increase the intercept of the IS curve, shifting it up.

If Both Government Expenditure, G, and Taxation, T, Increase by the Same