Which one of the following is not correct about the LM schedule? (A) The LM schedule slopes upward to the right. (B) The LM schedule will be relatively flat (steep) if the interest elasticity of money demand is relatively high (low). (C) The LM schedule will shift downward (upward) to the right (left) with an increase (decrease) in the quantity of money. (D) The LM schedule is the schedule giving the combinations of values of investment and interest rate that produce equilibrium in the money market.

UGC-NET 2023 Question 9: IS-LM model

Which one of the following is not correct about the LM schedule?

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This question is on Deriving the LM curve and its slope, part of IS-LM model in Macroeconomics.

How money market equilibrium gives an upward-sloping relation between interest rate and income.

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