Practice Exam 3Multiple Choice1. Which of the following is exogenous in the IS-LM model?(a) The interest rate(b) National Savings(c) The price level(d) Real GDP2. A monetary policy that commits in advance to different levels of monetarygrowth corresponding to different economic conditions is called a(n)3. If the government increases its spending and, at the same time, increasestaxes by the same amount, then according to the IS/LM model4. Of all of the following that could be used as money, which would be mostlikely to be characterized asfiat money?