Which of the following is TRUE as we move along the IS-curve?
A) a lower interest rate is compatible with a higher equilibrium output level
B) a higher equilibrium output level is compatible with a higher interest rate
C) a lower equilibrium income level is compatible with a higher level of transactions demand for money
D) a higher interest rate is compatible with a higher level of equilibrium income and therefore a higher level of consumption
E) a higher interest rate is compatible with higher asset prices and therefore a higher level of saving
Correct Answer:
Verified
Q10: From which of the following equations can
Q11: In which of the following years were
Q12: Which of the following will NOT cause
Q13: The IS-curve will become flatter if
A)money demand
Q14: Which of the following will occur in
Q16: The level of investment spending is affected
Q17: Interest rate changes have an important side
Q18: In an IS-LM model, any point that
Q19: We can expect the IS-curve to become
Q20: In the IS-LM model, the interest rate
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