3.) The IS curve shifts to the right when interest rates decreases thereby increasing GDP. True...

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Question

3.) The IS curve shifts to the right when interest rates decreases thereby increasing GDP. True...

3.) The IS curve shifts to the right when interest rates decreases thereby increasing GDP.

True

False

business economics

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Answer 1

Answer #1

Answer= False-=

reason- IS curve shows all combination of income and real interest rate for which the goods and service amrket will be in equilibrium.

A fall in interest rate will lead to a downward movement along the curve instead of a shift in the curve.

This downward movement along the curve will lead to a rise in GDP.

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Answer 2

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