The IS curve plots for each level of income the ________ that causes income to equal ________.
A)interest rate,planned expenditures
B)interest rate,planned autonomous spending
C)planned autonomous spending,planned expenditures
D)planned autonomous spending,planned autonomous spending

Question

Quizplus · Accepted Answer

The IS curve shows the combinations of interest rates and planned expenditures that result in a given level of income. Therefore, the correct answer is A, which indicates that the IS curve plots the interest rate that causes income to equal planned expenditures.

The IS Curve Plots for Each Level of Income the ________