Match the development on the graph to the macroeconomic process that it represents. slide along the LM curve slide along the IS curve shift of the LM curve shift of the IS curve ✓ [Choose ] does not happen in this scenario If the interest rate is to raise, it will be harder to have expenditure and there will be less money market is in equilibrium goods and loans markets are in equilibrium with a higher government spending, there is more expenditure even at the same old interest rate more transactions can only be supported if a higher interest rate compels people to give up liquidity goods, loans, and money markets are in equilibrium loans market is in equilibrium goods market is in equilibrium

Match the development on the graph to the macroeconomic process that it represents. slide along the LM curve slide along the IS curve shift of the LM curve shift of the IS curve ✓ [Choose ] does not happen in this scenario If the interest rate is to raise, it will be harder to have expenditure and there will be less money market is in equilibrium goods and loans markets are in equilibrium with a higher government spending, there is more expenditure even at the same old interest rate more transactions can only be supported if a higher interest rate compels people to give up liquidity goods, loans, and money markets are in equilibrium loans market is in equilibrium goods market is in equilibrium

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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