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1. The IS curve plots the relationship between the interest rate and ______ that arises in the market for ______.
a. national income; goods and services
b. the price level; goods and services
c. national income; money
d. the price level; money

Respuesta :

cecylya

Answer:

The correct answer is a. national income; goods and services

Explanation:

This is a relationship that we use in macroeconomics.  

The IS curve describes the combinations of two variables ,  they are interest rate and the level of income, when the market of goods and services is in equilibrium.  

So,  The IS curve plots the relationship between the interest rate and national income that arises in the market for goods and services

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