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lesantik [10]
3 years ago
5

1. The IS curve plots the relationship between the interest rate and ______ that arises in the market for ______.

Business
1 answer:
Julli [10]3 years ago
6 0

Answer:

The correct answer is a. national income; goods and services

Explanation:

This is a relationship that we use in macroeconomics.  

The IS curve describes the combinations of two variables ,  they are interest rate and the level of income, when the market of goods and services is in equilibrium.  

So,  The IS curve plots the relationship between the interest rate and national income that arises in the market for goods and services

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5 0
3 years ago
Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp rise
monitta

As a member of the Federal Reserve Board, in an inflationary situation I would suggest a change in the federal funds rate that would be accomplished by raising the base interest rate of the US economy. This would make bonds more attractive and people would stop consuming to invest in public debt securities. In addition, raising interest rates would discourage credit, causing banks to lend less. Since inflation is a monetary phenomenon caused by the excess of currency in circulation, these measures would have a downward effect on inflation, as they reduce the amount of money in circulation in the economy.

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3 0
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guajiro [1.7K]

Answer:

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