Which of the following about IS relation is not correct?
A) It is the the relation between interest rate and savings.
B) It is the equilibrium condition for the goods market.
C) It stands for "Investment equals saving."
D) It shows what firms want to invest must be equal to what people and the government want to save.
A
You might also like to view...
An opportunity cost of economic growth is
A) essentially zero because economic growth leads to such large gains in the long run. B) the decrease in production of consumption goods in the present time period. C) decreased by the creation of capital goods rather than consumption goods. D) so high that places such as Hong Kong have had to do without it.
According to the simple macroeconomic model presented in Chapter 3, which of the following will not be caused by an increase in government spending?
A. an increase in interest rate B. a decrease in consumption C. a decrease in investment D. an increase in government debt