Question

Explain how can you derive the LM curve from the money market​

Answer 1

Answer:

Derivation of the LM Curve:

The LM curve can be derived from the Keynesian theory from its analysis of money market equilibrium. According to Keynes, demand for money to hold depends upon transactions motive and speculative motive. It is the money held for transactions motive which is a function of income.

Answer 2

Answer:

Derivation of the LM Curve:

The LM curve can be derived from the Keynesian theory from its analysis of money market equilibrium. According to Keynes, demand for money to hold depends upon transactions motive and speculative motive. It is the money held for transactions motive which is a function of income.

hope it's helpful,

follow me