The LM-Curve

question 5

Multiple Choice

The LM-curve

• A)shows the relationship between the interest rate and the level of investment spending
• B)is negatively sloped because increases in the income level can only be achieved if the interest rate is lowered
• C)is negatively sloped since increases in money supply always lower interest rates
• D)is upward sloping because a higher income level is always associated with a higher nominal money supply
• E)shows combinations of the interest rate and the income level such that money supply and money demand are equal

---

Definitions:

Acidic

Pertaining to substances that have a pH less than 7, and are capable of donating a proton or hydrogen ion in a chemical reaction.

Strong Acids

Acids that completely ionize in solution, yielding a high concentration of hydrogen ions (H+) and demonstrating a strong ability to donate protons.

Strong Acid

An acid that completely dissociates in water, releasing a high concentration of hydrogen ions and exhibiting a low pH.

Formic Acid

A colorless, pungent liquid with the formula HCOOH, used in various chemical manufacturing processes and as a preservative.