An Explanation for the Slope of the IS Curve Is

question 106

Multiple Choice

An explanation for the slope of the IS curve is that as the interest rate increases, the quantity of investment ______, and this shifts the expenditure function ______, thereby decreasing income.

• A) increases; downward
• B) increases; upward
• C) decreases; upward
• D) decreases; downward

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Definitions:

Confidence Interval

A statistical range, derived from sample data, that is likely to contain the true population parameter with a specified level of confidence.

Sample Size

The number of observations or data points collected in a sample.

Variable

An element, feature, or factor that is liable to vary or change.

Confidence Interval

A gamut of values, arising from sample statistic evaluation, with a high likelihood of encompassing the value of a mysterious population parameter.