Along an LM curve at lower interest rates there is __________ money demanded, so income must be lower to __________ the demand for transactions balances if the total demand for money is to equal the fixed supply.

Question

Quizplus · Accepted Answer

At lower interest rates, more money is demanded for transactions, so income must be lower to decrease the demand for transactions balances, ensuring the total demand for money equals the fixed supply.

Along an LM Curve at Lower Interest Rates There Is