At a point above the LM curve,
A)there is an excess demand for money.
B)there is an excess demand for nonmoney assets.
C)the real interest rate is below its equilibrium level.
D)there is an excess demand for goods.

Question

Quizplus · Accepted Answer

At a point above the LM curve, the interest rate is higher than the equilibrium level, leading to an excess demand for nonmoney assets as people prefer to hold bonds or other assets instead of money.

At a Point Above the LM Curve