The IS curve will shift to the right when which of the following occurs?

Question

Quizplus · Accepted Answer

The IS curve represents the relationship between the interest rate and the level of income that brings the goods market into equilibrium. An increase in government spending directly increases aggregate demand, leading to a rightward shift of the IS curve. Increases in the money supply and reductions in the interest rate primarily affect the LM curve, not the IS curve directly.

The IS Curve Will Shift to the Right When Which