Which of the following would cause the IS curve to shift?
A) a change in the multiplier
B) a change in business or consumer confidence
C) an increase in autonomous tax revenue
D) all of these would shift the IS curve.

Question

Quizplus · Accepted Answer

A change in the multiplier (A) would affect the slope of the IS curve, causing it to become steeper or flatter. A change in business or consumer confidence (B) would shift the IS curve due to a change in investment or consumption expenditure. An increase in autonomous tax revenue (C) would shift the IS curve to the left because it reduces disposable income and consumption expenditure. Therefore, all of these would cause a shift in the IS curve.

Which of the Following Would Cause the IS Curve to Shift