10 Questions
The LM relationship reflects both monetary policy and the supply of goods. True or False?
False
The classic LM curve is based on the demand for goods and supply of money. True or False?
True
The IS curve combines the definition of national income with simple consumption and simple investment functions. True or False?
True
If consumption becomes more sensitive to output, it will affect the slope of the IS curve. True or False?
True
The LM curve only uses a description of how Central Banks currently set interest rates. True or False?
True
The IS-LM model allows us to analyze the interest rate, true or false?
True
The IS-LM model assumes that prices are fixed, true or false?
True
The weaknesses of the IS-LM model prevent its extensive use, true or false?
False
The IS relationship in the IS-LM model reflects expenditure and its relationship with the _____________ .
False
The IS-LM model can be used to explore the effects of government expenditure and taxes, true or false?
True
Test your knowledge on the topic of Expenditure and Interest Rates with this quiz for ES20013 Intermediate Macro 1, Week 1, taught by Chris Martin at the University of Bath.
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