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    5. The LM curve represents the equilibrium in which market?

    Question

    The LM curve represents the equilibrium in which

    market?
    A Goods market Correct Answer Incorrect Answer
    B Labor market Correct Answer Incorrect Answer
    C Money market Correct Answer Incorrect Answer
    D Foreign exchange market Correct Answer Incorrect Answer

    Solution

    The LM curve shows combinations of interest rates and output levels where the money market is in equilibrium.

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