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

Question

Quizplus · Accepted Answer

The IS curve represents combinations of interest rates and output where the goods market is in equilibrium, assuming fixed fiscal policy, meaning both government spending and taxes are fixed.

Along Any Given IS Curve