With respect to the IS/LM model, which of the following statements is false? Interest rates and output are the endogenous variables The position of the IS curve is given by α (alpha) The IS/LM model is an extension of the income-spending model The LM curve maps interest rates and output such that the money market clears Along the IS curve, planned aggregate spending is equal to income

IS-LM model was developed by John Hicks and also known as Hicks-Hansen model. IS in this model…

Answered: With respect to the IS/LM model, which…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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With respect to the IS/LM model, which of the following statements is false?

		Interest rates and output are the endogenous variables
		The position of the IS curve is given by α (alpha)
		The IS/LM model is an extension of the income-spending model
		The LM curve maps interest rates and output such that the money market clears
		Along the IS curve, planned aggregate spending is equal to income

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