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What is IS curve?

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Anonymous

12y ago
Updated: 1/12/2023

It is the locus of combinations of the interest rate and the level of real national income for which desired aggregate expenditure equals actual national income.So called because, in a closed economy with no government, it also reflects the combinations of the interest rate and national income for which investment equals saving, I=S. In general, it reflects points for which injections equal withdrawals.

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Jana Lockman

Lvl 10
2y ago

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