Business, 25.03.2020 02:19 amontgomery51

In the IS–LM model, which two variables are influenced by the interest rate? supply of nominal money balances and demand for real balances demand for real money balances and investment spending demand for real money balances and government purchases supply of nominal money balances and investment spending

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Answer from: bri994

In the IS–LM model, the two variables that are influenced by the interest rate are option B. demand for real money balances and investment spending. The IS–LM model is also known as the Hicks–Hansen model and it an economic tool available to determine the relation between the interest rates and assets market.

Further details about the model are given below:

•The full form of the model is "investment-savings" (IS) and "liquidity preference-money supply" (LM) and is represented on a graph.

•The model helps in finding the relation between the money market and the market available for economic goods.

Therefore, the correct option is B i.e. demand for real money balances and investment spending are influenced by the interest rate.

Learn more about the money balances here:

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Answer from: brummy309506

Demand for real money balances and investment spending

Explanation:

In a case where income is high, there is increased demand for real money balances. People would want to hold more money for transactions. Then interest rate is expected to be higher to keep money supply and liquidity demand at equilibrium.

Investments spendings are higher when the interest rate is low and also lower with higher interest rates.

Answer from: Quest

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

Answer from: Quest

The right of freedom of speech possibly.

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In the IS–LM model, which two variables are influenced by the interest rate? supply of nominal money...

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