Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The IA line describes the behavior of firms and consumers when a change in the inflation rate causes interest rates to change.
B) The IA line identifies inflation at any given time.
C) The IA line identifies all possible points of spending balance.
D) The AD curve identifies the rate of inflation at any given time.
E) The IA line identifies real GDP at any given time.