A decline in expected future output would cause the IS curve to

A) shift up and to the right.
B) shift down and to the left.
C) remain unchanged.
D) shift up and to the right only if people face borrowing constraints.

B

Economics

You might also like to view...

The amount of investment demand at each interest rate falls. If the Fed holds to an unchanged interest rate target, the change in GDP is __________ if it had held to an unchanged money supply target

A) greater than B) less than C) the same as

Economics

In a free market, the price of housing adjusts to eliminate the shortages that give rise to undesirable landlord behavior

a. True b. False Indicate whether the statement is true or false

Economics