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The Main Reason for the IS Curve Having a Downward

Question 87

Multiple Choice

The main reason for the IS curve having a downward slope is


A) higher output raises saving,which leads to a lower market-clearing interest rate.
B) higher output raises saving,which leads to a higher market-clearing interest rate.
C) higher output decreases saving,which leads to a lower market-clearing interest rate.
D) higher output decreases saving,which leads to a higher market-clearing interest rate.

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