The LM curve is the set of combinations of ________ such that ________.
A)interest rates and real money balances,real income equals real money balances times (1/r)
B)interest rates and real money balances,the money supply is equally demanded
C)real income and real money balances,the production of output is equally demanded
D)real income and interest rates,the production of output is equally demanded
E)real income and interest rates,the money supply is equally demanded

Question

Quizplus · Accepted Answer

The LM curve represents combinations of real income and interest rates where the demand for money equals the supply of money.

The LM Curve Is the Set of Combinations of ________