Answer:
D. the combinations of output and the interest rate where the goods market is in equilibrium.
Explanation:
The IS curve means investment-savings curve.
The IS curve is the combinations of output and the interest rate where the goods market is in equilibrium.
It is a curve which shows the different combinations of income (Y) and the real interest rate (r) such that the market for goods and services is in equilibrium.
This means that, every point on the IS curve is an income/real interest rate pair (Y,r) such that the demand for goods is equal to the supply of goods(Qs=Qd) or equivalently, the desired national saving is equal to desired investment.
Answer:
B
Explanation:
Reserves J: Excess reserves J: Loans J: Deposits ;Money supply
When a bond contract rate is less than the current market rate on the date of issuance, the bond will be sold at Discount
Discount = Contract rate is less than the market rate.
What is meaning of discount and its types?
When a reduction in the amount is allowed in order to encourage more purchase or to have an on time payment is referred to as discount. Discount are classified as: Trade discount: The discount which is allowed when purchases are made in large quantity is known as trade discount.
Contract rate:
The contract rate; also called the coupon rate, stated rate, or nominal rate; is the interest percentage listed on the face of a note or bond. In other words, this is the interest rate that will be paid on the principle balance for the life of the note or bond.
Learn more about bond contract rate:
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Answer:
Explanation:
An outward shift in demand will occur if income increases, in the case of a normal good; however, for an inferior good, the demand curve will shift inward noting that the consumer only purchases the good as a result of an income constraint on the purchase of a preferred good.
