If people feel optimistic about the future of the economy ________.
A)autonomous consumption might increase
B)autonomous investment might increase
C)it might shift the IS curve to the right
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

If people feel optimistic about the future of the economy, they are more likely to increase their consumption and investment, which leads to an increase in autonomous consumption and investment. This increase in autonomous expenditure shifts the IS curve to the right. Therefore, all the given options are correct.

If People Feel Optimistic About the Future of the Economy