Why Does the LL Schedule Have a Negative Slope

Multiple Choice

Why does the LL schedule have a negative slope?

A) The economic stability loss from pegging to the area's currencies rises as the degree of economic interdependence rises.
B) The economic stability loss from pegging to the area's currencies falls as the degree of economic interdependence rises.
C) The economic stability loss from pegging to the area's currencies falls as the degree of economic interdependence falls.
D) The economic stability loss from pegging to the area's currencies rises as the degree of economic activity increases.
E) The economic stability loss from pegging to the area's currencies is constant, even as the degree of economic activity increases.