The LM curve slopes upward because
a. as income rises, savings rise, increasing output.
b. as interest rates rise, the money supply rises, increasing output.
c. as interest rates rise, planned investment must fall, increasing output.
d. as income increases, money demand rises, which increases interest rates.
e. none of the above.
D
Economics
You might also like to view...
If an increase in income results in higher prices for yachts, we can conclude
A. that yachts are inferior goods. B. that there was a decrease in the supply of yachts. C. that there was an increase in the supply of yachts. D. that yachts are normal goods. E. there’s no relationship between income and the demand for yachts.
Economics
Which statement is FALSE?
A. MV = GDP B. PQ = GDP C. MV = PQ D. None of these choices are false.
Economics