Multiple Choice
In the IS-LM model, which two variables are influenced by the interest rate?
A) supply of nominal money balances and demand for real balances
B) demand for real balances and government purchases
C) supply of nominal money balances and investment spending
D) demand for real money balances and investment spending
Correct Answer:

Verified
Correct Answer:
Verified
Q3: When drawn on a graph with Y
Q6: When planned expenditure is drawn on a
Q9: a. The interest rate affects which variable
Q13: Assume that the money demand function is
Q38: With planned expenditure and the equilibrium condition
Q51: In the Keynesian-cross model, actual expenditures equal:<br>A)
Q93: Consider the impact of an increase in
Q96: When firms experience unplanned inventory accumulation, they
Q102: John Maynard Keynes wrote that responsibility for
Q104: The equilibrium condition in the Keynesian-cross analysis