In the four-part diagram used to construct the IS curve, a decrease in the interest rate causes

A) an increase in Ap and induced saving but does not shift the IS curve.
B) an increase in Ap and induced saving and shifts the IS curve to the right.
C) a decrease in Ap, an increase in induced saving, and shifts the IS curve to the right.
D) a decrease in Ap and a decrease in induced saving, but does not shift the IS curve.

A

Economics

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