Other things equal,a decrease in autonomous consumption shifts the ________ curve to the ________.
A)IS;right
B)IS;left
C)LM;left
D)LM;right

Question

Quizplus · Accepted Answer

Autonomous consumption is a component of autonomous expenditure, which shifts the IS curve. A decrease in autonomous consumption would decrease autonomous expenditure, leading to a leftward shift of the IS curve. The LM curve is not affected by changes in autonomous consumption.

Other Things Equal,a Decrease in Autonomous Consumption Shifts the ________