Question

Which of the following is incorrect regarding LM curve?

A Each point of LM curve shows an interest-income level at which demand for money is equal to supply for money
B The slope of the LM curve depends on responsiveness of demand for money to the changes in income
C The slope of LM curve depends on the elasticity demand for money to the changes in rate of interest. The higher the elasticity the steeper the curve.
D LM curve shifts to the right when the stocks of money supply increased
E LM curve shifts to the left if there is decrease in money demand function
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