Along an IS curve as income levels __________, saving is larger, so the interest rate must be __________ to expand the level of investment so it will be equal to saving

A) increase; higher
B) increase; lower
C) decrease; higher
D) decrease; lower


B

Economics

You might also like to view...

The Populists succeeded in using the federal government to limit subsidies granted to corporations

Indicate whether the statement is true or false

Economics

If utility is not maximized, then:

a. some change in consumption will increase satisfaction. b. no change in consumption will increase utility. c. only a change in income will increase utility. d. only a change in price will increase utility. e. the principle of diminishing marginal utility does not hold.

Economics

Since 1933, bank failures have occurred

a. frequently b. very rarely c. once every 3 years d. every year e. once every 5 years

Economics

Time lags

What will be an ideal response?

Economics