Question #48034
what is is and lm
1
Expert's answer
2014-10-21T12:27:11-0400
IS (the investment/saving curve) is a variation of the income-expenditure model incorporating market interest rates and, LM (the liquidity preference/money supply equilibrium curve) represents the amount of money available for investing. The IS–LM model demonstrates the relationship between interest rates and real output.

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