Suppose the Economy Is Operating on the LM Curve but Not

question 61

Multiple Choice

Suppose the economy is operating on the LM curve but not on the IS curve.Given this information,we know that

• A)the goods market is in equilibrium and the money market is not in equilibrium.
• B)the money market and bond markets are in equilibrium and the goods market is not in equilibrium.
• C)the money market and goods market are in equilibrium and the bond market is not in equilibrium.
• D)the money, bond and goods markets are all in equilibrium.
• E) neither the money, bond, nor goods markets are in equilibrium.

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Definitions:

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