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An Interpretation of Why the IS Curve Slopes Downward and to the Right

Question 20

Multiple Choice

An interpretation of why the IS curve slopes downward and to the right is that as income rises,national saving rises,and this increase drives the interest rate:


A) down,thereby decreasing investment.
B) down,thereby increasing investment.
C) up,thereby decreasing investment.
D) up,thereby increasing investment.

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