Along an IS curve all of the following are always true except:
A) planned expenditures equal actual expenditures.
B) planned expenditures equal income.
C) the demand for real balances equals the supply of real balances.
D) demand and supply of loanable funds are equal.

Question

Quizplus · Accepted Answer

The IS curve represents equilibrium in the goods market, where planned expenditures equal income and demand and supply of loanable funds are equal. However, it does not directly relate to the money market, where the demand for real balances equals the supply of real balances.

Along an IS Curve All of the Following Are Always