Suppose the Current Level of Output and the Interest Rate

question 52

Multiple Choice

Suppose the current level of output and the interest rate are such that the economy is operating on neither the IS nor LM curve.Which of the following is true for this economy?

• A)Production does not equal demand.
• B)The money supply does not equal money demand.
• C)The quantity supplied of bonds does not equal the quantity demanded of bonds.
• D)Financial markets are not in equilibrium.
• E) all of the above

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