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The LM curve is a representation formed from all the combinations of the interest rate and the national income for which the monetary sector finance assignment assistance (that part of the economy formed of assets, institutions, and financial markets, including the demand and supply of money) is in a state of equilibrium. The shape of the LM curve is an upward slope because finance assignment help online an increase in income generates an increase in money demand. Since usually the increase of the money demand is faster than the increase of the quantity of money on the market, the interest rate will increase as well. The magnitude of LMs slope depends of the elasticity of money relative to the interest rates. A low value of the interest rate will be followed by quite steep.
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