Along any given IS curve:
A) tax rates are fixed, but government spending varies.
B) government spending is fixed, but tax rates vary.
C) both government spending and tax rates vary.
D) both government spending and tax rates are fixed.

Question

Quizplus · Accepted Answer

The IS curve represents all combinations of interest rates and levels of output (GDP) at which the goods market is in equilibrium, with both government spending and tax rates assumed to be fixed.

Along Any Given IS Curve