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The Reason for the Downward-Sloping IS Curve Is That ________

Question 5

Multiple Choice

The reason for the downward-sloping IS curve is that ________.


A) lower interest rates lead to higher saving and higher output
B) higher interest rates lead to higher saving and lower output
C) higher interest rates lead to lower saving and higher output
D) all of the above
E) none of the above

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