Multiple Choice
The LM curve is the combinations of
A) the output gap and the real interest rate for which the money market is in equilibrium.
B) the inflation rate and nominal interest rate for which the money market is in equilibrium.
C) the inflation rate and real interest rate for which the money market is in equilibrium.
D) the inflation rate and real interest rate for which the goods market is in equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
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