The IS Curve Describes Short-Run Movements in an Economy Via $\uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \downarrow \text { Output }$

Multiple Choice

The IS curve describes short-run movements in an economy via which of the following?

A) $\uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \downarrow \text { Output }$
B) $\uparrow \text { Interestrate } \Rightarrow \downarrow \text { Investment } \Rightarrow \downarrow \text { Output }$
C) $\text { } \uparrow \text { Tax rate } \Rightarrow \downarrow \text { Consumption } \Rightarrow \downarrow \text { Output }$
D) $\uparrow \text { Interestrate } \Rightarrow \uparrow \text { Investment } \Rightarrow \uparrow \text { Output }$
E) $\uparrow \text { Taxrate } \Rightarrow \uparrow \text { Governmentexpenditure } \Rightarrow \uparrow \text { Output }$