Question: The IS curve will shift ____ when government spending increases but will likely have an ambiguous effect if imports ______ at the same time. Moreover,
The IS curve will shift ____ when government spending increases but will likely have an ambiguous effect if imports ______ at the same time. Moreover, consumption, as well as exports and investment, all change given changes to _________.
a. Right, increase, potential output.
b. Left, decrease, potential output.
c. Right, increase, income.
d. Right, decrease, income.
e. Left, increase, potential output.
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