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21) A decrease in autonomous consumption ________. A) lowers planned expenditures B) raises equilibrium output for any level of the interest rate C) causes a movement down along the IS curve D) all of the above E) none of the above 22) A decrease in autonomous consumption ________. A) raises planned expenditures B) lowers equilibrium output for any level of the interest rate C) shifts the IS curve to the right D) all of the above E) none of the above 23) An increase in autonomous investment ________. A) increases equilibrium output at any interest rate B) causes a movement down along the IS curve C) shifts the IS curve to the left D) all of the above E) none of the above 24) A decrease in autonomous investment ________. A) increases equilibrium output at any interest rate B) causes a movement down along the IS curve C) shifts the IS curve to the left D) all of the above E) none of the above 25) A decrease in autonomous investment ________. A) decreases equilibrium output at any interest rate B) lowers planned expenditures C) shifts the IS curve to the left D) all of the above E) none of the above 26) If people feel optimistic about the future of the economy ________. A) autonomous consumption might increase B) autonomous investment might increase C) it might shift the IS curve to the right D) all of the above E) none of the above 27) In a stock market boom ________. A) autonomous consumption might increase because stock holders might feel richer and consume more B) autonomous investment might increase because a higher stock value for a firm helps firms raise funds for increased investment C) the IS curve might shift to the right D) all of the above E) none of the above 28) In a stock market boom ________. A) government spending will decrease B) interest rates will decrease C) saving is likely to decrease D) all of the above E) none of the above 29) On the graph above, a possible cause of the rightward shift of the IS curve is an increase in ________. A) foreign demand for domestic goods B) taxes C) domestic demand for foreign goods D) the exchange rate E) none of the above 30) On the graph above, unplanned inventory investment occurs if the economy is moving from point ________ to point ________. A) D; C B) C; B C) B; A D) all of the above E) none of the above

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