Question

What does the term "IS curve" represent in the ISLM model?

A The relationship between interest rate and level of income that equates the demand for and supply of money.
B The relationship between interest rate and level of income that equates savings and investment.
C The relationship between price level and level of income that equates demand and supply.
D The relationship between government spending and level of income that equates aggregate demand and aggregate supply.
E The relationship between tax rates and level of income that maximizes government revenue.
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