LM curve slopes ________
1 point
Upwards
Downwards
Is parallel to the x axis
Is parallel to the y axis
Answers
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1
Answer:
upward sloping
Explanation:
The LM curve is upward sloping: given the money supply and the bond supply, an increase in the national income and product raises the interest rate. We see this property in the reduced form (8) and (9): as y rises, R rises. That the LM curve is upward sloping is a general result.
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