Decreasing the money supply will ______ the nominal interest rates in the short run and shift the LM curve ______. (a)increase; upward (b)increase; to the right (c) reduce; downward (d)reduce; to the left

Decreasing the money supply will the nominal interest rates in the short run and shift the LM curve . (a)increase; upward (b)increase; to the right (c) reduce; downward (d)reduce; to the left

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 5QR

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Question

Decreasing the money supply will ______ the nominal interest rates in the short run and shift the LM curve ______.

(a)increase; upward

(b)increase; to the right

(d)reduce; to the left

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