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Unformatted text preview: Quiz This activity contains 15 questions. Which of the following would shift the FE line to the left? A beneficial supply shock An increase in the capital stock A decrease in labor supply A decrease in the future marginal productivity of capital The IS curve illustrates that when income increases, the interest rate must rise to restore equilibrium in the goods market. interest rate must fall to restore equilibrium in the asset market. interest rate must fall to restore equilibrium in the goods market. interest rate must rise to restore equilibrium in the asset market. As we move down along the IS curve, investment spending and savings both increase. investment spending increases but savings does not change. investment spending and savings both decline. investment spending declines but savings increases. A rise in expected future output that doesn't affect labor supply would shift the...
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