In an IS-LM model, any point that is to the left and below the IS-curve indicates a situation where
A) there is excess demand for goods and services in the expenditure sector
B) there is excess supply of goods and services in the expenditure sector
C) the expenditure sector is in equilibrium but the money sector is not
D) there is excess demand for money in the money sector
E) there is excess supply of money in the money sector
Correct Answer:
Verified
Q13: The IS-curve will become flatter if
A)money demand
Q14: Which of the following will occur in
Q15: Which of the following is TRUE as
Q16: The level of investment spending is affected
Q17: Interest rate changes have an important side
Q19: We can expect the IS-curve to become
Q20: In the IS-LM model, the interest rate
Q21: In an IS-LM model, an increase in
Q22: Which of the following will result in
Q23: Monetary policy becomes more effective as
A)the interest
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