IS curve downward sloping

Yes, the IS curve is downward sloping. It represents the relationship between interest rates and the level of income that equates the goods market, where lower interest rates stimulate investment and increase aggregate demand, leading to higher output or income levels. Conversely, higher interest rates tend to reduce investment and aggregate demand, resulting in lower output. Thus, as interest rates decrease, the economy moves to a higher level of income, illustrating the negative slope of the IS curve.