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The IS Curve Has a Positive Slope Because A(n)__________ in the Interest

Question 37

Multiple Choice

The IS curve has a positive slope because a(n) __________ in the interest rate leads to a(n) __________ in desired investment and this leads to an increase in GDP.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Correct Answer:

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