Which of the following statements would be true of an economy that can be characterized as being to the left of the IS curve?
A) There is an excess demand for commodities at the existing interest rate.
B) There will be a tendency for the level of output to decrease.
C) There is an excess supply of commodities at the existing interest rate.
D) There will be a tendency for interest rates to fall.
Correct Answer:
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Q1: A change in the interest rate will
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A)the currency part
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Q7: In the early stages of macroeconomic model
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Q9: The three functions of money are
A)store of
Q10: In the IS-LM model,equilibrium income can be
Q11: The money supply consists of
A)currency alone.
B)currency and
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