Scan QR code or get instant email to install app
Question:
With respect to the IS-LM model, in an LM curve the real interest rate is:
A
positively related to real income, holding the real money supply constant.
explanation
The LM curve illustrates a positive relationship between real income and the real interest rate, holding the real money supply constant. The IS curve illustrates a negative relationship between real income and the real interest rate, holding the marginal propensity to save constant.
Take more free practice tests for other PASSEMALL topics with our cfa practice questions now!
Related Information
Comments