The investment and saving line in the IS-LM model connects
A) points of equilibrium in the goods market at different interest rates.
B) points of equilibrium in the money market at different interest rates.
C) points of equilibrium in the goods market and the money market.
D) points at which investment and saving are equal.

Question

Quizplus · Accepted Answer

The IS curve represents points where the goods market is in equilibrium, meaning investment equals saving at different interest rates.

The Investment and Saving Line in the IS-LM Model Connects