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What is IS-LM-model Introduction?
The IS-LM model is a model related with the subject macroeconomics. This model is made up of the IS and LM curves. IS stands for Investment/saving and it provides a variation to the income-expenditure model. LM stands for Liquidity preference/Money supply equilibrium and has its application in determining the amount which can be invested. Both the components are like the demand and supply parts of this model. The introduction to this topic consists of an explanation of all the terms and their relations to each other.
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