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

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

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

I = f (i) it is

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

S = f (y) it is

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

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

The IS curve slopes downwards i.e. ...............

Decrease in ............... causes investment spending to rise which shifts aggregate demand curve up and raises the income level.

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

The ................ curve shows the different combinations of interest rate and income at which the money market is in equilibrium.

The .............. model relates the monetary policy.

The demand for money is a demand for ................... balances because people hold money for what it will buy.

The .................... of money (M) is controlled by the central bank and it is constant

............... is the Money market Equilibrium.

LM curve slopes upwards to the right, i.e. it is .................sloped.

The interaction of the IS curve and the LM curve together determine:

In the IS-LM model when government spending rises, in short-run equilibrium, in the usual case the interest rate ______ and output ______.

An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve ______.

If taxes are raised, but the Fed prevents income from falling by raising the money supply, then