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Interest Rates And Output

The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?

The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ?

A. money supply curve
B. LM curve
C. money demand curve
D. IS curve

The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the ? Read More »

Economics Mcqs, Interest Rates And Output, Money

Each point on the IS curve represents the equilibrium point in the ?

Each point on the IS curve represents the equilibrium point in the ?

A. goods market for the given interest rate
B. goods market for the given level of government spending
C. money market for the given level of the money supply
D. money market for the given value of aggregate output

Each point on the IS curve represents the equilibrium point in the ? Read More »

Economics Mcqs, Interest Rates And Output, Money

If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?

If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur?

A. a hyperinflation
B. a depression
C. stagflation
D. a recession

If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, _________ will occur? Read More »

Economics Mcqs, Interest Rates And Output, Money

The demand for money represents the idea that there is ?

The demand for money represents the idea that there is ?

A. a positive relationship between the interest rate and the quantity of money demanded
B. a negative relationship between the price level and the quantity of money demanded
C. a negative relationship between the level of aggregate output and the quantity of money demanded
D. a negative relationship between the interest rate and the quantity of money demanded

The demand for money represents the idea that there is ? Read More »

Economics Mcqs, Interest Rates And Output, Money