For each interest rate, the LM curve illustrates the level of output where
A) the goods market is in equilibrium.
B) inventory investment equals zero.
C) money supply equals money demand.
D) all of the above
E) none of the above
C
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New growth theory is concerned with
A) finding a good way to measure economic growth. B) increasing the savings rate in the U.S. C) understanding the forces that increase productivity. D) understanding how compounding works.
How does a monopolist choose the profit maximizing output-price combination?
One lesson history has taught us is, if governments tax and over-regulate currencies and banks:
a. The private sector usually finds a way to circumvent these taxes and restrictions. b. Governments have been very effective at controlling the pace at which currencies have developed worldwide. c. Commerce rarely follows community. d. To gain widespread trust and usage, currencies must be backed by precious metals.
When the economy slows down the:
A. supply of workers increases. B. demand for workers increases. C. demand for workers decreases. D. supply of workers decreases.