Solved

The Slope of an LM Curve

Question 29

Multiple Choice

The slope of an LM curve


A) gets steeper the more responsive the demand for money is to changes in GDP.
B) gets flatter the more responsive the demand for money is to changes in the interest rate.
C) is invariant, in the simple case at least, to small changes in the price level.
D) is invariant to policy shifts in the supply of money, unless the sensitivity of the demand for money to changes in GDP or interest rates is affected.
E) all of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents