Question

1. The is curve will not shift when which of the following occurs?
a). A reduction in government spending
b). A reduction in consumer confidence
c). A reduction in the interest rate
d). all of the above
e). none of the above​

Answer 1

Answer:

option c a reduction in the interest rate

Answer 2

Answer:

Option (c) is correct.

Explanation:

In this question, we have to determine the situation in which the curve will not shift. There are four options are given from which we have to select the correct option. From the given option the reduction in the interest rate does not shift the curve because the reduction in the interest rate does not impact the curve. When the interest rate is reduced it does not effect the price of goods hence, the curve does not shift.

Hence, option (c) is correct.

Option (a) is not correct because it shift the curve.

Option (b) is not correct because it shift the curve.

Option (d) is not correct because all the options are not correct.

Option (d) is not correct because correct answer is given in the options.

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