The LM curve has a ----- slope
A)Positive
B)Negative
C)Zero
D)None of these

Name: The LM curve has a ----- slope A)Positive B)Negative C)Zero D)None of these
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Question

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The LM curve, which represents the relationship between the liquidity preference and money supply in an economy, has a positive slope. This is because an increase in income leads to an increase in demand for money (holding interest rates constant), which in turn requires higher interest rates to maintain equilibrium in the money market.

The LM Curve Has a ----- Slope