Both are unbalanced combinations in which the demand for money is less than the supply of money; Only the combination of income and interest rate on lm curve is the balanced combination of money demand and money supply. In the money market, the combination of income and interest rate on the right side of lm curve is an unbalanced combination of money demand greater than money supply, which means that the amount of money people are willing to hold in the money market is exactly equal to the amount of money actually available. Lm curve is mainly influenced by monetary policy. The expansionary fiscal policy [the government expands the money supply] will keep the income unchanged. The combination of income and interest rate on the left side of lm curve. Every point on the lm curve represents that the money market has reached equilibrium.

The mathematical expression of 1 and LM curve is M/P=KY-HR, and its slope is positive, indicating that LM curve generally inclines to the upper right. Generally speaking, in the money market, the combination of income and interest rate on the right side of LM curve is an unbalanced combination of money demand greater than money supply; The combination of income and interest rate on the left side of LM curve is an unbalanced combination in which money demand is less than money supply. Only the combination of income and interest rate on LM curve is the equilibrium combination of money demand equal to money supply.

2. Every point on the 2.LM curve represents that the money market has reached equilibrium, that is to say, the amount of money people are willing to hold in the money market is exactly equal to the amount of money they can actually get. LM curve is mainly influenced by monetary policy. The expansionary fiscal policy [the government expands the money supply] will make the interest rate level fall under the condition of constant income, that is, the LM curve will move parallel to the right.

3. Generally speaking, in the money market, the combination of income and interest rate on the right side of LM curve is an unbalanced combination of money demand greater than money supply; The combination of income and interest rate on the left side of LM curve is an unbalanced combination in which money demand is less than money supply. Only the combination of income and interest rate on LM curve is the equilibrium combination of money demand equal to money supply.

4. Every point on the 4.LM curve represents that the money market has reached equilibrium, that is to say, the amount of money people are willing to hold in the money market is exactly equal to the amount of money they can actually get. LM curve is mainly influenced by monetary policy. The expansionary fiscal policy [the government expands the money supply] will make the interest rate level fall under the condition of constant income, that is, the LM curve will move parallel to the right.