Factors that shift the IS curve involve:
A) interest rates and levels of GDP.
B) the quantity of money and the demand for money.
C) the trade balance.
D) exogenous variables affecting demand, such as a change in government spending or a change in the exchange rate.

Question

Quizplus · Accepted Answer

Factors that shift the IS curve are exogenous variables affecting demand, such as a change in government spending or a change in the exchange rate. The other options, interest rates, levels of GDP, quantity of money, and demand for money, are factors that affect movements along the IS curve.

Factors That Shift the IS Curve Involve