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In the IS-LM model, what is the primary role of the LM curve?
  • a)
    To show the relationship between investment and interest rates.
  • b)
    To show the relationship between consumption and income.
  • c)
    To show the relationship between money demand and money supply.
  • d)
    To show the relationship between government expenditure and taxes.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
In the IS-LM model, what is the primary role of the LM curve?a)To show...
The LM curve in the IS-LM model represents the equilibrium in the money market by showing the combinations of income and interest rates where the real money demand equals the real money supply.
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In the IS-LM model, what is the primary role of the LM curve?a)To show the relationship between investment and interest rates.b)To show the relationship between consumption and income.c)To show the relationship between money demand and money supply.d)To show the relationship between government expenditure and taxes.Correct answer is option 'C'. Can you explain this answer?
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In the IS-LM model, what is the primary role of the LM curve?a)To show the relationship between investment and interest rates.b)To show the relationship between consumption and income.c)To show the relationship between money demand and money supply.d)To show the relationship between government expenditure and taxes.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In the IS-LM model, what is the primary role of the LM curve?a)To show the relationship between investment and interest rates.b)To show the relationship between consumption and income.c)To show the relationship between money demand and money supply.d)To show the relationship between government expenditure and taxes.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the IS-LM model, what is the primary role of the LM curve?a)To show the relationship between investment and interest rates.b)To show the relationship between consumption and income.c)To show the relationship between money demand and money supply.d)To show the relationship between government expenditure and taxes.Correct answer is option 'C'. Can you explain this answer?.
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