A Downward-Sloping Investment Function Yields a Falling IS Curve, but a Downward-Sloping

question 84

Essay

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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Definitions:

Petty Cash Fund

A special cash fund to pay relatively small amounts.

Petty Cash Fund

A small amount of cash on hand used for minor or incidental expenses of a business.

Petty Cash Account

A small amount of cash kept on hand in a business for minor expenditures.

Internal Control System

Strategies and measures put in place by a firm to maintain the honesty of its financial and accounting records, promote responsible management, and deter fraudulent activities.