Author Question: In the IS-LM model, the two variables that are affected by the interest rate are a. money supply ... (Read 115 times)

Starlight · **on:** Jun 30, 2018

In the IS-LM model, the two variables that are affected by the interest rate are

a. money supply and money demand.
b. money supply and investment spending.
c. money demand and consumption.
d. money demand and investment spending.
e. none of the above.

Question 2

Government purchases of goods and services

a. consist of current output of goods and services purchased by the federal government only. b. includes the current output of goods and services bought by the federal, state, and local governments.
c. are the largest component of gross national product.
d. include both defense spending and spending on social security.