📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Based on the IS curve and LM curve you have

    derived in Q36 and Q37, what is the equilibrium interest rate? 
    A 4% Correct Answer Incorrect Answer
    B 5.9% Correct Answer Incorrect Answer
    C 6.37% Correct Answer Incorrect Answer
    D 0% Correct Answer Incorrect Answer
    E 3.57% Correct Answer Incorrect Answer

    Solution

    Combining the IS curve and the LM curve we obtain the interest rate as

    r*=3.57%

    Practice Next
    More Research Questions
    ask-question