In the IS Curve $\tilde { Y } _ { t } = \bar { a } - \bar { b } \left( R _ { t } - \bar { r } \right)$

Multiple Choice

In the IS curve $\tilde { Y } _ { t } = \bar { a } - \bar { b } \left( R _ { t } - \bar { r } \right)$ , the term $\bar { a }$
Is called:

A) the tax rate
B) the elasticity of output with respect to the interest rate
C) a consumption expenditure shock
D) the deviation of the real interest rate to the marginal product of capital
E) an aggregate demand shock