Question #200173

mathematically and theoretically explain the difference between the is curve and the lm curve


Expert's answer

The IS curve depicts the set of all levels of interest rates and output (GDP) at which total investment (I) equals total saving (S). ... The LM curve depicts the set of all levels of income (GDP) and interest rates at which money supply equals money (liquidity) demand.


LATEST TUTORIALS
APPROVED BY CLIENTS