According to the IS Curve, When Interest Rates Rise, ________

Multiple Choice

According to the IS curve, when interest rates rise, ________ and ________.

A) governments borrow less; firms produce less
B) firms and households borrow more; firms produce less
C) firms and households borrow less; firms produce less
D) firms and households borrow more; firms produce more
E) firms and households borrow more; governments produce more