IS-LM Model

The IS - LM model is represent the .................equilibrium of the economy

• general

• Partial

• Goods market only

• money market only

IS – LM model shows the............of the goods and money markets

• seperation

• integration

• closure

• none of the above

.............. depends on the rate of interest and it is inversely related to interest rate.

• demand of manry

• supply of money

• Investment

• production

The ........ market equilibrium shown by the IS curve

• capital

• money

• goods

• textile

.............. depends on the level of income and it is directly relate to income

• demand of money

• supply of money

• Investment

• Saving

The ............. shows the different combinations of interest rates and the level of income at which the goods market is in equilibrium

• LM curve

• IS curve

• demand curve

• supply curve

The IS model relates to the ............. policy.

• Fiscal

• monetary

• education

• health

The IS curve slopes downwards

• true

• false

Decrease in ............... causes investment spending to rise.

• saving

• interest rate

• income

• production

The .................... market is concerned with demand for and supply of money

• money

• goods

• factor

• service