In the IS curve, at __________ income levels, saving is __________, so the interest rate must be __________ to expand investment.

Name: In the IS curve, at __________ income levels, saving is __________, so the interest rate must be __________ to expand investment.
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Question

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At higher income levels, saving is larger, so to encourage investment, the interest rate must be lower. This is depicted by a downward sloping IS curve.

In the IS Curve, at __________ Income Levels, Saving Is