2. If the BP curve sits above the intersection of IS and LM, then
(A)the real interest rate and the real income levels are too high resulting in a balance of payments
surplus.
(B) the nominal interest rate and the real income levels are inconsistent with a balance of
payments equilibrium.
(C) real money demand is not equal to real income balances.
(D)real income balances are greater than real trade balances.