Choose the correet answer!
The lS curve slops down because:
As the real interest rale rises,the govemment increasestaxes to finance the greater interest payments on
its debt
B.
As the real interest rate rises,the central bank tightens monetary policy.
C.
As the real interest rate rises,the govemment cuts back on its purchases.
D. As the real interest rate lrises,households investless in the stock market.
E. As the real interest rate rises,firms buy fewer machines and build fewer factories.