The LM Curve Is Positively Sloped Because

question 1

Multiple Choice

The LM curve is positively sloped because:

• A) at higher levels of income, the transactions demand for money is higher.
• B) higher rates of interest lead to lower capital flows
• C) at lower interest rates the levels of investment and national income are higher
• D) at lower interest rates the level of national income is higher

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Definitions:

Action Potential

A rapid rise and subsequent fall in voltage or electrical charge across a cellular membrane, typical of neurons and muscle cells.

Myelin Sheath

A fatty layer that surrounds the axons of some nerve cells, serving to speed up electrical impulses transmitted along the nerve cells.

Adjacent Cells

Cells that are next to each other, sharing a common boundary or close proximity.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.