The intersection of the IS and LM curves determines the values of:
A)r, Y, and P, given G, T, and M.
B)r, Y, and M, given G, T, and P.
C)r and Y, given G, T, M, and P.
D)p and Y, given G, T, and M.

Question

Quizplus · Accepted Answer

The intersection of the IS and LM curves determines the equilibrium interest rate (r) and output (Y) in the goods and money markets, given fiscal policy (G, T), money supply (M), and price level (P).

The Intersection of the IS and LM Curves Determines the Values