Which of the Following Statements Is Consistent with a Given

Multiple Choice

Which of the following statements is consistent with a given IS curve?

A) An increase in the interest rate causes money demand to decrease.
B) An increase in taxes causes an increase in demand for goods.
C) An increase in government spending causes a decrease in demand for goods.
D) An increase in the interest rate causes investment spending to decrease.
E) An increase in the interest rate causes a decrease in the money supply.