Two Interpretations of the IS-LM Model Are That the Model

Multiple Choice

Two interpretations of the IS-LM model are that the model explains:

A) the determination of income in the short run when prices are fixed, or what shifts the aggregate demand curve.
B) the short-run quantity theory of income, or the short-run Fisher effect.
C) the determination of investment and saving, or what shifts the liquidity preference schedule.
D) changes in government spending and taxes, or the determination of the supply of real money balances.