Economics · Macroeconomics
According to the Hicks-Hansen Synthesis, what relationship does the IS curve illustrate?
- 1The relationship between interest rate and output/income in the goods market✓
- 2The relationship between interest rate and investment in the money market
- 3The relationship between aggregate output and investment spending
- 4The relationship between national income and consumption expenditure
Correct answer
The relationship between interest rate and output/income in the goods market
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