The intersection of the IS curve and the FE line
A) represents money market equilbrium.
B) determines the equilibrium level of current output and the equilibrium inflation rate.
C) represents goods market equilibrium.
D) determines the equilibrium real interest rate and the equilibrium inflation rate.
Correct Answer:
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Q25: In a large open economy, the real
Q26: Which of the following would NOT cause
Q27: In an open economy,
A)the goods market is
Q28: The level of full employment output
A)increases as
Q29: In the savings-investment diagram, we know that
Q31: In comparison with a closed economy, in
Q32: In a large open economy,
A)domestic saving need
Q33: In a move up the IS curve,
A)investment
Q34: During the first Gulf War
A)the interest rate
Q35: Which of the following would NOT cause
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