The IS Curve Describes Short-Run Movements in an Economy Via $\uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \downarrow \text { Output }$

question 79

Multiple Choice

The IS curve describes short-run movements in an economy via which of the following?

• A) \(\uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \downarrow \text { Output }\)
• B) \(\uparrow \text { Interestrate } \Rightarrow \downarrow \text { Investment } \Rightarrow \downarrow \text { Output }\)
• C) \(\text { } \uparrow \text { Tax rate } \Rightarrow \downarrow \text { Consumption } \Rightarrow \downarrow \text { Output }\)
• D) \(\uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \uparrow \text { Output }\)
• E) \(\uparrow \text { Taxrate } \Rightarrow \uparrow \text { Governmentexpenditure } \Rightarrow \uparrow \text { Output }\)

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