The IS curve has a ------slope
A)Positive
B)Negative
C)Zero
D)None of these

Name: The IS curve has a ------slope A)Positive B)Negative C)Zero D)None of these
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

The IS curve, which represents the relationship between interest rates and the level of income that brings the goods market into equilibrium, has a negative slope. This is because higher interest rates typically reduce investment spending, leading to lower overall demand and income.

The IS Curve Has a ------Slope