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Suppose the current level of output and the interest rate are such that the economy is operating on neither the IS nor LM curve. Which
Suppose the current level of output and the interest rate are such that the economy is operating on neither the IS nor LM curve. Which of the following is true for this economy?
Select one:
a.The quantity supplied of bonds does not equal the quantity demanded for bonds.
b.Financial markets are not in equilibrium.
c.Production does not equal demand.
d.The money supply does not equal money demand.
e.All of the above.
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