curve is the locus of pairs of interest rates and levels of income which are compatible with goods market equilibrium a. Is b. LM C. LI d. SM
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Answer:
The LM curve
Explanation:
shows the combinations of interest rates and levels of real income for which the money market is in equilibrium. It shows where money demand equals money supply. For the LM curve, the independent variable is income and the dependent variable is the interest rate.
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