If the IS Curve Is Given by Y = 1,700

question 81

Multiple Choice

If the IS curve is given by Y = 1,700 - 100r and the LM curve is given by Y = 500 + 100r, then equilibrium income and interest rate are given by:

• A) Y = 1,100, r = 6 percent.
• B) Y = 1,200, r = 5 percent.
• C) Y = 1,000, r = 5 percent.
• D) Y = 1,100, r = 5 percent.

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