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What determines the slope of the LM curve?
  • a)
    The responsiveness of money demand to income
  • b)
    The responsiveness of money demand to the interest rate
  • c)
    The level of autonomous spending
  • d)
    The responsiveness of investment to changes in income
Correct answer is option 'B'. Can you explain this answer?
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What determines the slope of the LM curve?a)The responsiveness of mone...
The slope of the LM curve is determined by the responsiveness of money demand to changes in the interest rate.
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What determines the slope of the LM curve?a)The responsiveness of money demand to incomeb)The responsiveness of money demand to the interest ratec)The level of autonomous spendingd)The responsiveness of investment to changes in incomeCorrect answer is option 'B'. Can you explain this answer?
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