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Macroeconomic Modeling
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The simple investment function shows that investment ______ as ______ increases.
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The IS curve generally determines:
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When drawn on a graph with income along the horizontal axis and the interest rate along the vertical axis, the IS curve generally:
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In the Keynesian-cross model, a decrease in the interest rate ______ planned investment spending and ______ the equilibrium level of income.
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The IS curve plots the relationship between the interest rate and ______ that arises in the market for ______.
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An IS curve shows combinations of:
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The IS curve shifts when any of the following economic variables change except:
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An increase in the interest rate:
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Along an IS curve all of the following are always true except:
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When the Federal Reserve reduces the money supply, at a given price level the amount of output demanded is ______ and the aggregate demand curve shifts ______.
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