Question

An increase in the demand for money, at any given income level and level of interest rates, will, within the IS–LM framework, ______ output and ______ interest rates. lower; lower. increase; lower lower; raise increase; raise

Answer 1

Answer: will, within the IS–LM framework, lower output and raise interest rates.

Explanation: The IS-LM (investment savings) (liquidity preference money supply) is a tool in economics that shows the interaction between interest rates and assets market.