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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Definitions:

Statistical Reasoning

The application of statistical principles and methods to make sense of and interpret quantitative data.

Sample

A subset of individuals, objects, or data selected from a larger population for the purpose of analysis.

Population

The total number of individuals or inhabitants within a particular area or belonging to a specific group.

Scatterplot

A type of graph in statistics that displays values for typically two variables for a set of data.