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5 April, 15:39

The IS curve will shift to the right when which of the following occurs? A) an increase in the money supply B) an increase in government spending C) a reduction in the interest rate D) all of the above E) none of the above

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  1. 5 April, 16:08
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    e) None

    Explanation:

    Either an increase in the money supply or an increase in government spending affects only the LM curve, and a change in the interest rate is the result of the model, not the cause as stated in the question.
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