The Reason for the Downward-Sloping IS Curve Is That ________

question 17

Multiple Choice

The reason for the downward-sloping IS curve is that ________.

• A) lower interest rates lead to lower saving and lower output
• B) lower interest rates lead to lower saving and higher output
• C) higher interest rates lead to lower saving and higher output
• D) all of the above
• E) none of the above