In the IS-LM model,the two variables that are affected by the interest rate are

Name: In the IS-LM model,the two variables that are affected by the interest rate are
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In the IS-LM model, the interest rate affects both money demand and investment spending. As interest rates increase, the cost of borrowing increases, which leads to a decrease in investment spending. Additionally, higher interest rates increase the opportunity cost of holding money, leading to a decrease in money demand.

In the IS-LM Model,the Two Variables That Are Affected by the Interest