Economy, asked by tsechu185, 6 months ago

The IS and LM function can provide a determinate solution to the rate of interest,Elaborate

Answers

Answered by janhvi9149

0

Explanation:

The IS-LM model, which stands for "investment-savings" (IS) and "liquidity preference-money supply" (LM) is a Keynesian macroeconomic model that shows how the market for economic goods (IS) interacts with the loanable funds market (LM) or money market. It is represented as a graph in which the IS and LM curves intersect to show the short-run equilibrium between interest rates and output.

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