The slope of the LM is not influenced by

Question

Quizplus · Accepted Answer

The slope of the LM curve, which represents the equilibrium points in the market for money between the demand for money and the supply of money, is influenced by the interest rate sensitivity of money demand (C) and the gap between money demand and supply (A). However, it is not directly influenced by the interest rate sensitivity of money supply (B), as the money supply is typically considered exogenous and fixed by the central bank in the short run, not varying with the interest rate in the context of the LM curve analysis.

The Slope of the LM Is Not Influenced by