Typically,the IS Curve Is

question 52

Multiple Choice

Typically,the IS curve is:

• A) Horizontal
• B) Vertical
• C) Downward-sloping
• D) Upward-sloping

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, or utilities.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Margin Of Safety

The extent to which sales can decline before a business reaches its breakeven point.

Variable Expenses

Costs that change in proportion to the level of production or sales activities.