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.
Click to rate this post!
[Total: 0 Average: 0]