The IS-LM model shows equilibrium in:

A The labor market only

B Both the goods market (IS) and the money market (LM) simultaneously

C The bond market only

D International trade

✓ Correct Answer: Option B

IS-LM shows the joint equilibrium of the real economy (goods/services) and the monetary economy.

💡 Why is B) the correct answer?

The correct answer to the question "The IS-LM model shows equilibrium in:" is Option B: Both the goods market (IS) and the money market (LM) simultaneously.

The other options — A) The labor market only, C) The bond market only, D) International trade — are incorrect for this CFA Exam Prep question. As explained above: IS-LM shows the joint equilibrium of the real economy (goods/services) and the monetary economy.

📚 About This CFA Exam Prep Practice Question

This 3-level CFA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CFA Exam Prep practice test or use flashcards for spaced repetition review.

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The IS-LM model shows equilibrium in:

✓ Correct Answer: Option B

📚 About This CFA Exam Prep Practice Question

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