The IS curve ________.
A) traces out the points at which the goods market is in equilibrium
B) tells us how consumption expenditures fall as the real interest rises
C) tells us that as the real interest rate rises planned expenditures go down leading to increases in savings that satisfy the goods market equilibrium
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

The Answer of The IS curve ________.
A) traces out the points at which the goods market is in equilibrium
B) tells us how consumption expenditures fall as the real interest rises
C) tells us that as the real interest rate rises planned expenditures go down leading to increases in savings that satisfy the goods market equilibrium
D) all of the above
E) none of the above

The IS Curve ________