Which of the following is an equilibrium condition in the ISLM model?
A) Labor demand = labor supply
B) Desired investment = desired saving
C) Government spending = taxation
D) Money supply = income
B
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Currency reserves on account with the International Monetary Fund used to settle accounts between countries are known as
A) federal reserves. B) official reserve account transactions. C) unilateral transfer. D) special drawing rights.
The nation of Wheatland forbids international trade. In Wheatland, you can buy 1 pound of corn for 3 pounds of fish. In other countries, you can buy 1 pound of corn for 2 pounds of fish. These facts indicate that
a. Wheatland has a comparative advantage, relative to other countries, in producing corn. b. other countries have a comparative advantage, relative to Wheatland, in producing fish. c. the price of fish in Wheatland exceeds the world price of fish. d. if Wheatland were to allow trade, it would import corn.
When a firm is operating at an efficient scale,
a. average variable cost is minimized. b. average fixed cost is minimized. c. average total cost is minimized. d. marginal cost is minimized.
The disastrous famine in North Korea was the result, in great part, of the government's efforts to develop
a. new trade bloc b. stronger military c. market economy d. large middle class