The LM Curve Slopes Upward Because

question 11

Multiple Choice

The LM curve slopes upward because

• A) as income rises, the demand for money begins to exceed its supply
• B) as interest rates rise, the demand for money rises
• C) as the price level rises, the velocity of money increases
• D) as the money supply rises, the inflation rate increases
• E) as the demand for money rises, the supply of money is increased

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