The position of IS curve depends on---
A)rate of interest,
B)rate of investment,
C)autonomous expenditure
D)none of the above

Question

Quizplus · Accepted Answer

The IS curve represents the relationship between the interest rate and the level of income that brings the goods market into equilibrium. It depends on autonomous expenditure, which includes components like government spending, investment independent of the interest rate, and autonomous consumption, rather than directly on the rate of interest or the rate of investment.

The Position of IS Curve Depends On---