From 1992 until the end of the decade, the US economy
A) experienced a shifting of the IS curve to the right because of increased business optimism and tight fiscal policy.
B) experienced a shifting of the IS curve to the left due to an increase in interest rates.
C) experienced a movement down and to the right along the IS curve.
D) experienced a shifting of the IS curve to the left due to a decrease in the baseline level of investment spending.

Question

Quizplus · Accepted Answer

During this period, the US economy saw significant growth, partly due to increased business optimism and a tight fiscal policy, which would shift the IS curve to the right, indicating an increase in overall demand.

From 1992 Until the End of the Decade, the US