What does each point on the LM curve signify in terms of market equilibrium?

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Equilibrium in the money market at a fixed money supply levelEquilibrium in the money market across varying interest rates and output levelsEquilibrium in the goods market given a specific government expenditureEquilibrium in the goods market at a particular interest rate

Explanation

The LM curve illustrates equilibrium points in the money market for different combinations of interest rates and output. Options A and B refer to the money market, but only option B correctly identifies the varying interest rates and output levels. Options C and D relate to the goods market, which is not represented by the LM curve.