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    Question

    Which of the following statements is/are correct with

    reference to, Intersection of IS and LM curve corresponds to – 1.      Equilibrium in the real sector 2.      Equilibrium in the monetary sector 3.      Liquidity trap necessarily 4.      Walrasian general equilibrium
    A 1 and 3 Correct Answer Incorrect Answer
    B 1 and 2 Correct Answer Incorrect Answer
    C 2,3 and 4 Correct Answer Incorrect Answer
    D 1 and 4 Correct Answer Incorrect Answer
    E All Correct Answer Incorrect Answer

    Solution

    The intersection of IS LM curve corresponds to Equilibrium in the real or product sector and monetary sector  

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