Multiple Choice
If the economy is on the LM curve,but is to the right of the IS curve,aggregate output will ________ and the interest rate will ________.
A) rise;rise
B) rise;fall
C) fall;rise
D) fall;fall
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q77: In the money market,a condition of excess
Q78: An increase in the money _ shifts
Q79: In the open-economy ISLM model,the goods market
Q80: In the long-run ISLM model and with
Q81: When the central bank _ the money
Q83: In the basic closed-economy ISLM model,the LM
Q84: In the open-economy ISLM model,net export is
Q85: According to the liquidity preference theory,the demand
Q86: Everything else held constant,if aggregate output is
Q87: An autonomous rise in _ shifts the