An explanation for the slope of the IS curve is that as the interest rate increases, the quantity of investment , and this shifts the expenditure function , thereby decreasing income.
a) increases; downward
b) increases; upward
c) decreases; upward
d) decreases; downward

An explanation for the slope of the IS curve is that as the interest rate increases, the quantity of investment decreases, and this shifts the expenditure function downward, thereby decreasing income.

This means that there is a negative relationship between interest rate and investment demand, a rise in interest rate will decrease the investment and as a investment falls the expenditure function shifts downward.

An explanation for the slope of the IS curve is that as the interest rate increases, the quantity of investment ______, and this shifts the expenditure function ______, thereby decreasing income. a) increases; downward b) increases; upward c) decreases; upward d) decreases; downward

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An explanation for the slope of the IS curve is that as the interest rate increases, the quantity of investment , and this shifts the expenditure function , thereby decreasing income.
a) increases; downward
b) increases; upward
c) decreases; upward
d) decreases; downward