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


    ⚡ Rakhi Special - Flat 52% off on All Courses from 6 to 10 Aug! ⚡ Enroll Now

    Question

    In the IS-LM model, what happens if the demand for money

    (money holding) increases, all else being equal?
    A Interest rates fall, and output increases. Correct Answer Incorrect Answer
    B Interest rates rise, and output decreases. Correct Answer Incorrect Answer
    C Interest rates fall, and output decreases. Correct Answer Incorrect Answer
    D Interest rates rise, and output increases. Correct Answer Incorrect Answer

    Solution

    The correct answer is B

    Practice Next
    ask-question