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The IS Curve Describes Short-Run Movements in an Economy Via  Interestrate  Investment  Output \uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \downarrow \text { Output }

Question 19

Multiple Choice

The IS curve describes short-run movements in an economy via which of the following?


A)  Interestrate  Investment  Output \uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \downarrow \text { Output }
B)  Interestrate  Investment  Output \uparrow \text { Interestrate } \Rightarrow \downarrow \text { Investment } \Rightarrow \downarrow \text { Output }
C)   Tax rate  Consumption  Output \text { } \uparrow \text { Tax rate } \Rightarrow \downarrow \text { Consumption } \Rightarrow \downarrow \text { Output }
D)  Interestrate  Investment  Output \uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \uparrow \text { Output }
E)  Taxrate  Governmentexpenditure  Output \uparrow \text { Taxrate } \Rightarrow \uparrow \text { Governmentexpenditure } \Rightarrow \uparrow \text { Output }

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