The intuition behind the slope of the LM curve is that a. as ...

[Bernana]

The intuition behind the slope of the LM curve is that
 
  a. as the interest rate increases, the money supply increases and income increases.
  b. as the interest rate increases, investment and income decreases.
  c. as income increases, money demand increases which increases interest rates.
  d. as income increases, money demand decreases which decreases interest rates.
  e. none of the above.

Question 2

Capital, K, includes
 
  A) money.
  B) machinery.
  C) business loans.
  D) know-how.

[chinwesucks]

Answer to Question 1

C

Answer to Question 2

B