Multiple Choice
The liquidity and money (LM) curve has
A) a positive slope showing that the money market is in equilibrium at a higher interest rate when national income is higher.
B) a negative slope showing that the money market is in equilibrium at a lower interest rate when national income is higher.
C) a positive slope showing that the money supply is positively related to national income.
D) a negative slope showing that the money supply is negatively related to national income.
Correct Answer:
Verified
Correct Answer:
Verified
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