The Following Curves Represent an Equilibrium in Which Markets? Match

question 48

Multiple Choice

The following curves represent an equilibrium in which markets? Match the curves with the type of equilibrium.
I.Money market equilibrium
II.Balance of payments equilibrium
III.Goods market equilibrium

• A) IS, BP, LM
• B) LM, BP, IS
• C) BP, IS, LM
• D) LM, IS, BP

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Definitions:

Return

The income produced by an investment, typically expressed as a percentage of the investment’s cost.

Total Assets

The sum of all assets owned by a company, including cash, investments, equipment, and real estate.

Profitability

A measure of how efficiently a company or project generates profit in relation to its revenue or investments.

Times Interest Earned

A financial ratio that measures a company’s ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.