Economics · Macroeconomics

The IS-LM model determines national income and interest rates by assuming:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Simultaneous equilibrium in both goods and money markets✓
2Completely flexible prices in the short run
3Ignoring the effects of interest rates
4Only fiscal policy actions

Correct answer

Simultaneous equilibrium in both goods and money markets

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