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    Macroeconomics Study Set 60
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    Exam 11: Aggregate Demand I: Building the Islm Model
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    A Downward-Sloping Investment Function Yields a Falling IS Curve, but a Downward-Sloping
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A Downward-Sloping Investment Function Yields a Falling IS Curve, but a Downward-Sloping

Question 84

Question 84

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A downward-sloping investment function yields a falling IS curve, but a downward-sloping demand for real money balance curve yields a rising LM curve. Why?

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Both the IS and the LM curves plot relat...

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