0
Q
IS/LM links
A
The market for good and the money market
1
Q
AD is affected by movement in the market for goods but also…
A
The money market
2
Q
In the goods market ______ affects the demand for goods, the level of income and output
A
Interest rate
3
Q
In the short run the interest rate is not ____
A
Fixed
4
Q
The goods market is in equilibrium when…
A
AD = Y ie. investment = saving
5
Q
Change in interest means
A
A move along the IS curve
6
Q
High multiplier and high interest rate effect will lead to ____ IS curve
A
Flatter
Principles of Economics
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