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The IS Curve Provides Combinations of Interest Rates and Income

Question 29

Multiple Choice

The IS curve provides combinations of interest rates and income that satisfy equilibrium in the market for ______, and the LM curve provides combinations of interest rates and income that satisfy equilibrium in the market for ______.


A) saving and investment; planned spending
B) real-money balances; loanable funds
C) goods and services; real money balances
D) real-money balances; goods and services

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