When IS=1500 - 50r, money supply = 500, price (p) =2, /p = Y - 50r, find the interest rate.
Tap an option to check your answer.
JNU SSS 2021 Question 33: IS-LM model
Answer and worked solution
Checking your account…
Plain-text version
When IS=1500 - 50r, money supply = 500, price (p) =2, M_d /p = Y - 50r, find the interest rate. (A) 12.50 (B) 13.60 (C) 14.23 (D) 1200
IS-LM model has come up 137 times in 7 exams since 2004.
What this question tests
This question is on Equilibrium and shifts in IS-LM, part of IS-LM model in Macroeconomics.
Solving for income and the interest rate and tracing what shifts each curve.
TestStop has 18 past-paper questions on this subtopic; the nearest in year are below.
Similar questions from other papers
- The interest rate and price level are jointly determined by simultaneous equilibrium of:
- Consider the following IS-LM model where, C₀ is autonomous consumption, c is marginal propensity to consumption, T₀ is the autonomous tax, t is the tax rate on income…
- Consider a closed economy IS-LM model with downward sloping IS curve. If there is an increase in government spending, then which one of the following statements is…
- If Investment-Saving (IS) curve is less elastic, then:
- Which of the following statements are correct about the IS curve? (A) It shows the combination of the interest rate and the level of income such that the money market…
Question from the JNU SSS 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.