The IS curve describes the ________ relationship between ________ and ________.
A) negative; tax rate; investment
B) positive; interest rate; output
C) positive; tax rate; government expenditure
D) negative; interest rate; output
E) negative; interest rate; money supply

Question

Quizplus · Accepted Answer

The IS curve describes the negative relationship between interest rates and output, as lower interest rates stimulate investment and consumption leading to higher levels of output.

The IS Curve Describes the ________ Relationship Between ________ and ________

The IS Curve Describes the Relationship Between and