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Luxury Model

Q: What is an LM race car as in Ford GT LM Race Car?

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Luxury Model

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It is a diagrammatic representation of a model of aggregate demand determination based upon the locus ofequilibrium points in the aggregate expenditure sector (IS) and the monetary sector(LM).

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It is a diagrammatic representation of a model of aggregate demand determination based upon the locus ofequilibrium points in the aggregate expenditure sector (IS) and the monetary sector(LM).

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The IS-LM (Investments-Savings - Liquidity preference Money supply) model refers to the economical model linking interest rates with real output, created by Hicks.

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what is IS-LM?

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