The LM curve is the combinations of
A) the output gap and the real interest rate for which the money market is in equilibrium.
B) the inflation rate and the nominal interest rate for which the money market is in equilibrium.
C) the inflation rate and the real interest rate for which the money market is in equilibrium.
D) the inflation rate and the real interest rate for which the goods market is in equilibrium.
Correct Answer:
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