Which one of the following is not correct about LM schedule?
1
The LM schedule slopes upward to the right.
2
The LM schedule will be relatively flat (steep) if the interest elasticity of money demand is relatively high (low).
3
The LM schedule will shift downward (upward) to the right (left) with an increase (decrease) in the quantity of money.
4
The LM schedule is the schedule giving the combinations of values of investment and interest rate that produce equilibrium in the money market.