Question

using IS-Lm model analyse the impact of an increase in money supply on the equilibrium level of income and rate if interest​

Answer 1

Explanation:

The interest rate, or (i or R), makes up the vertical axis. ... The LM curve slopes upward because higher levels of income (GDP) induce increased demand to hold money balances for transactions, which requires a higher interest rate to keep money supply and liquidity demand in equilibrium.

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