All else equal, firms' optimal levels of capital are higher when the interest rate is higher. If the money supply does not grow as fast as the price level, output will tend to fall and interest rates tend to will rise. When unemployment is below the natural rate, prices rise and thus the IS curve shifts significantly to the left while the LM curve may not shift significantly. Consumption spending depends on income rather than wealth. Consumption spending should vary widely from year to year.
Consumers look ahead to the future in making current spending decisions.
All of the above. None of the above. The natural rate of unemployment will decrease. None of the above. All of the above.