The IS Curve ________

question 92

Multiple Choice

The IS curve ________.

• A)traces out the points at which the goods market is in equilibrium
• B)tells us that consumption expenditures fall as the real interest rises
• C)tells us that as the real interest rate rises planned expenditures go down leading to decreases in output that satisfy the goods market equilibrium
• D)all of the above
• E)none of the above

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