In the IS-LM Model, Which Two Variables Are Influenced by the Interest

question 11

Multiple Choice

In the IS-LM model, which two variables are influenced by the interest rate?

• A)supply of nominal money balances and demand for real balances
• B)demand for real balances and government purchases
• C)supply of nominal money balances and investment spending
• D)demand for real money balances and investment spending

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Definitions:

Matching Hypothesis

A theory suggesting that individuals are more likely to form long-lasting relationships with those who are equally matched in social attributes, like physical attractiveness.

Males

Refers to the biological sex that typically produces small, mobile gametes, such as sperm in humans.

Equal Physical Attractiveness

The theory that individuals are more likely to form and maintain relationships with others who are of a similar level of attractiveness.

Matching Hypothesis

The theory suggesting that individuals are more likely to form long-term relationships with those who are similar to themselves in physical attractiveness.