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Figure 20.2: IS Curve

Question 78

Multiple Choice

Figure 20.2: IS Curve Figure 20.2: IS Curve -Consider Figure 20.2. If ________ is the IS curve without the interest rate gap, ________ is the IS curve that includes the interest rate gap. A) IS<sub>2</sub>; IS<sub>5</sub> B) IS<sub>1</sub>; IS<sub>4</sub> C) IS<sub>1</sub>; IS<sub>5</sub> D) IS<sub>1</sub>; IS<sub>3</sub> E) IS<sub>3</sub>; IS<sub>5</sub>
-Consider Figure 20.2. If ________ is the IS curve without the interest rate gap, ________ is the IS curve that includes the interest rate gap.


A) IS2; IS5
B) IS1; IS4
C) IS1; IS5
D) IS1; IS3
E) IS3; IS5

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