Along any given IS curve:
A)tax rates are fixed, but government spending
B)varies. government spending is fixed, but tax
C)rates vary. both government spending and tax rates vary.
D)both government spending and tax rates are fixed.

Question

Quizplus · Accepted Answer

Along any given IS curve, both government spending and tax rates are fixed, as the curve represents combinations of interest rates and output where the goods market is in equilibrium, assuming fiscal policy is constant.

Along Any Given IS Curve