Factors that cause the IS curve to shift include
A)changes in autonomous consumer spending.
B)changes in government spending.
C)changes in investment spending related to a change in the interest rate.
D)only (a) and (b) of the above.

Question

Quizplus · Accepted Answer

The IS curve shifts due to changes in autonomous consumer spending and changes in government spending, not due to changes in investment spending related to a change in the interest rate, as this is a movement along the curve rather than a shift of the curve.

Factors That Cause the IS Curve to Shift Include