The IS Curve ________

question 80

Multiple Choice

The IS curve ________.

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

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