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The IS Curve ________

Question 92

Multiple Choice

The IS curve ________.


A) traces out the points at which the goods market is in equilibrium
B) tells us that consumption expenditures fall as the real interest rises
C) tells us that as the real interest rate rises planned expenditures go down leading to decreases in output that satisfy the goods market equilibrium
D) all of the above
E) none of the above

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