Explain the effect of each of the following on the IS curve.a. Government spending decreasesb. Foreign demand for the country's exports increases.c. The country's interest rate increases

Explain the effect of each of the following on the IS curve.a. Government spending decreasesb.
Foreign demand for the country's exports increases.c. The country's interest rate increases
IS equation =
Y = C(Y-T(Y))+I(r)+G+NX(Y)
Answer a. IS curve will shift left if the Government spending decreases and other factors are constant.
Because Real interest would be lower and real GDP would be lower. Like The government can
increase taxes which lowers consumer spending (shifting IS left).
Answerb. If the export increases than the IS curve...