The IS curve has a positive slope because a(n) __________ in the interest rate leads to a(n) __________ in desired investment and this leads to a decrease in GDP
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
B
You might also like to view...
Refer to the figure below. What is the Nash equilibrium of this game? 
A. A chooses Up, B chooses Right B. A chooses Up, B chooses Left C. A chooses Down, B chooses Left D. A chooses Down, B chooses Right
Poverty rated tend to be higher than average for:
a. those 65 years or older b. those under 18 years c. both of the above d. neither of the above
If the price of a typical good rises, the quantity supplied for that good will
A. decrease. B. automatically increase to infinity. C. increase. D. remain the same.
Recall the Application about setting the price of tickets for Major League Baseball games to answer the following question(s).According to the Application, what is the reason that MLB teams are setting the price of their tickets where the marginal revenue was negative?
A. They can get additional revenue from concessions. B. MLB owners only care about popularity. C. TV revenues are way larger than ticket revenues. D. The pricing is set by the Federal Trade Commission.