Every point on an open-economy IS curve represents:
A) combinations of interest rates and the supply of money, which result in equilibrium in the money market.
B) combinations of interest rates and levels of production, which result in equilibrium in the goods market.
C) combinations of interest rates and levels of production, which result in equilibrium in the money market, the goods market, and the forex market.
D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.

Question

Quizplus · Accepted Answer

The Answer of Every point on an open-economy IS curve represents:
A) combinations of interest rates and the supply of money, which result in equilibrium in the money market.
B) combinations of interest rates and levels of production, which result in equilibrium in the goods market.
C) combinations of interest rates and levels of production, which result in equilibrium in the money market, the goods market, and the forex market.
D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.

Every Point on an Open-Economy IS Curve Represents