The LM curve illustrates all combinations of domestic output levels and interest rates for which
A. the domestic money market is in equilibrium.
B. there is a zero balance for the country's official settlements balance.
C. there is full employment.
D. the domestic product market is in equilibrium.
Answer: A
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The table above gives Sharon's demand for ground beef at two different income levels. Use the midpoint method in this problem
a. What is the percentage change in Sharon's income? b. What is the percentage change in the quantity demanded? c. What is Sharon's income elasticity of demand for ground beef? d. Is ground beef a normal or an inferior good for Sharon?
The ability of an asset to hold its value over time is a(n)
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred payment.
Credit risk is:
a. The chance of a change in the market value of a security due to changes in macroeconomic variables, such as interest rates or exchange rates. b. The risk that credit cannot be expanded by the banking system due to central bank regulations. c. The chance that you will not be able to get a credit card when you really need it. d. The chance that borrowers will be unable or unwilling to repay their debts. e. The chance that a company will not be able to get a loan (i.e., credit) when it needs funding.
Conscious manipulation of the interest rate causes it to become a less effective tool in allocating resources among time periods.
Answer the following statement true (T) or false (F)