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Author Question: The intuition behind the slope of the LM curve is that a. as the interest rate increases, the ... (Read 70 times)

Bernana

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  • Posts: 530
on: Jun 30, 2018
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

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  • Posts: 341
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


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