The Intuition Behind the Slope of the LM Curve Is

question 26

Multiple Choice

The intuition behind the slope of the LM curve is that

• A)as the interest rate increases,the money supply increases and income increases.
• B)as the interest rate increases,investment and income decreases.
• C)as income increases,money demand increases which increases interest rates.
• D)as income increases,money demand decreases which decreases interest rates.
• E)none of the above.

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