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e Take a Test Internet Explorer gehttps/www.mathxl.com/student/PlayerTest.aspx?testld-1731584348icenterwin-yes Econ 3001 Wintersession 2017/2018 Quiz: Quiz Chapter 20 This Question: 1 pt 1 of 32 (12 complete) At points to the right of the IS curve, O A. there is an excess demand for goods, which leads to an unplanned O B. there is an excess supply of goods, which leads to an O C. there is an excess supply of goods, which leads to an unplanned decrease Real Interest Rate, r increase in inventories unplanned increase in inventories in inventories. D. there is an excess demand for goods, which leads to an unplanned decrease in inventories Refer to the figure on your right 1.) Use the point drawing fool to locate a point on the graph depicting excess demand for goods Carefully folow the instructions above, and only draw the required object IS Curve Aggregate Output, Y Click the graph, choose a tool in the palette and follow the instructions to create your graph . Need additional resources? Visit Purchase Options (in Course Home

Explanation / Answer

At the points to the right of the IS curve, there is excess supply of goods because at the prevailing interest rate, the investment is very high. Since investment is very high the supply is very high which leads to accumulation of inventories.

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