If the IS curve is given by Y = 1,700

Question

If the IS curve is given by Y = 1,700 - 100r and the LM curve is given by Y = 500 + 100r, then equilibrium income and interest rate are given by:
A) Y = 1,100, r = 6 percent.
B) Y = 1,200, r = 5 percent.
C) Y = 1,000, r = 5 percent.
D) Y = 1,100, r = 5 percent.

Quizplus · Accepted Answer

The Answer of If the IS curve is given by Y = 1,700 - 100r and the LM curve is given by Y = 500 + 100r, then equilibrium income and interest rate are given by:
A) Y = 1,100, r = 6 percent.
B) Y = 1,200, r = 5 percent.
C) Y = 1,000, r = 5 percent.
D) Y = 1,100, r = 5 percent.