1) The IS curve ________.

A) shows the relationship between aggregate output and the real interest rate when the goods market is in equilibrium

B) tells us that increases in autonomous consumption, investment, government purchases, or net exports raise output for any real interest rate

C) tells us that a decrease in taxes or in financial frictions leads to an increase in output for any given real interest rate

D) all of the above

E) none of the above

Planned investment spending ________.

a. is heavily influenced by expectations about the future

b. is unrelated to the real interest rate

c. is equal to planned fixed investment spending plus government investment

d. all of the above

e. none of the above