At points not on the IS curve,
A)the federal government's budget must not be balanced.
B)saving must not equal investment.
C)the interest rate must not equal the inflation rate.
D)the demand for money must not equal the supply of money.

Question

Quizplus · Accepted Answer

The IS curve represents all points where investment (I) equals savings (S), so at points not on the IS curve, saving does not equal investment.

At Points Not on the IS Curve