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

---

Definitions:

Danish Krone

The official currency of Denmark, often represented by the symbol DKK.

Danish Cookies

Delicious sweet biscuits originating from Denmark, often enjoyed during holidays and special occasions, frequently coming in a tin box.

Brazilian Real

The official currency of Brazil, represented symbolically as R$ and subdivided into 100 centavos.

Invoice

A document from a seller requesting payment from the buyer; the supplier’s bill.