In the IS curve,if Y increases for any given level of the real interest rate ________.
A)consumption increases
B)output decreases
C)saving decreases
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The IS curve shows the combinations of interest rates and levels of output that are consistent with equilibrium in both the goods and money markets. If output (Y) increases for any given level of the real interest rate, it means that consumers are spending more money on goods and services, and therefore consumption increases.

In the IS Curve,if Y Increases for Any Given Level