The LM curve
A)is horizontal.
B)is vertical.
C)slopes downward.
D)slopes upward.

Name: The LM curve A)is horizontal. B)is vertical. C)slopes downward. D)slopes upward.
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Question

Quizplus · Accepted Answer

The LM curve slopes upward, reflecting the positive relationship between income and the interest rate that equilibrates the money market. As income increases, demand for money increases, leading to higher interest rates to maintain money market equilibrium.

The LM Curve