ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ 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 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