The IS curve is, in part,
A) downward sloping because of the inverse relationship between investment and the interest rate; it is steeper the stronger is that relationship.
B) downward sloping because of the inverse relationship between the demand for money and the interest rate; it is flatter the stronger is that relationship.
C) downward sloping because of the positive relationship between disposable income and consumption; it is steeper the larger is the marginal propensity to consume.
D) upward sloping because of the positive relationship between the demand for money and the price level; it is steeper the stronger is that relationship.
E) a and c.

Question

Quizplus · Accepted Answer

The Answer of The IS curve is, in part,
A) downward sloping because of the inverse relationship between investment and the interest rate; it is steeper the stronger is that relationship.
B) downward sloping because of the inverse relationship between the demand for money and the interest rate; it is flatter the stronger is that relationship.
C) downward sloping because of the positive relationship between disposable income and consumption; it is steeper the larger is the marginal propensity to consume.
D) upward sloping because of the positive relationship between the demand for money and the price level; it is steeper the stronger is that relationship.
E) a and c.

The IS Curve Is, in Part