In each of the cases below, determine whether the IS curve shifts to the right or teft, does not shift, or is indeterminate in the direction of shift The real interest rate rises Choose.. The government provides tax incentives for research and development programs for firms Choose. Choose. Both taxes and government spending decrease by the same amount. Choose. The marginal propensity to consume increases Choose. Financial frictions increase. Choose. Autonomous consumption increases Choose.. IS curve shifts to the right IS curve shifts to the left IS curve doesn't shift
In each of the cases below, determine whether the IS curve shifts to the right or teft, does not shift, or is indeterminate in the direction of shift The real interest rate rises Choose.. The government provides tax incentives for research and development programs for firms Choose. Choose. Both taxes and government spending decrease by the same amount. Choose. The marginal propensity to consume increases Choose. Financial frictions increase. Choose. Autonomous consumption increases Choose.. IS curve shifts to the right IS curve shifts to the left IS curve doesn't shift
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:In each of the cases below, determine whether the IS curve shifts to the right or left, does not shift, or is indeterminate in the direction of shift.
The real interest rate rises
Choose.
Choose.
The government provides tax incentives for research and development programs for firms
Both taxes and government spending decrease by the same amount.
Choose.
Choose.
The marginal propensity to consume increases
Choose.
Financial frictions increase.
Choose.
Autonomous consumption increases
Choose
IS curve shifts to the right
IS curve shifts to the left
IS curve doesn't shift
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