In the IS-LM model,assuming downward sloping IS curve and upward sloping LM curve,reduction in consumers' wealth is going to

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A reduction in consumers' wealth is likely to reduce their spending, which will cause a leftward shift of the IS curve. This is because the IS curve represents the combination of interest rates and output levels at which aggregate demand equals output. When consumer spending drops, the level of output demanded at every interest rate falls, causing a leftward shift in the curve. The LM curve would remain unchanged because it represents the combination of interest rates and output levels at which the supply of money equals the demand for money.

In the IS-LM Model,assuming Downward Sloping IS Curve and Upward