At all points below the current LM curve,
A)the supply of output exceeds output demand.
B)the supply of output falls short of output demand.
C)the supply of money falls short of money demand.
D)the supply of money exceeds money demand.

Question

Quizplus · Accepted Answer

Below the LM curve, the demand for money exceeds the supply, as the LM curve represents equilibrium in the money market where money supply equals money demand.

At All Points Below the Current LM Curve