Which of the following occurs as the economy moves rightward along a given IS curve?
A) a reduction in the interest rate causes investment spending to decrease.
B) a reduction in the interest rate causes money demand to increase.
C) a reduction in the interest rate causes a reduction in the money supply.
D) an increase in government spending causes a reduction in demand for goods.
E) a reduction in taxes causes a reduction in demand for goods.
Correct Answer:
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