The LM Curve Is the Combinations of

question 3

Multiple Choice

The LM curve is the combinations of

• A) the output gap and the real interest rate for which the money market is in equilibrium.
• B) the inflation rate and the nominal interest rate for which the money market is in equilibrium.
• C) the inflation rate and the real interest rate for which the money market is in equilibrium.
• D) the inflation rate and the real interest rate for which the goods market is in equilibrium.

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Definitions:

Total Float

The total amount of time that a project task can be delayed without causing a delay to the project's completion date.

Cheque Clear

The process by which a cheque's funds move from the issuer's account to the recipient's account, and the cheque is deemed successfully processed.

Banking System

A network of financial institutions, including banks, that provide financial services to the public and businesses.

Availability Float

The time difference between when a deposit is made in a bank account and when the amount becomes available for use.