Other things equal, if the demand for money becomes more elastic, then the LM curve will become _______. In other words, a given rise in the interest rate will, in order for money market equilibrium to be preserved, be associated with a ________ rise in income. Select one: a. less elastic / smaller b. less elastic / larger c. more elastic / smaller d. more elastic / larger
Other things equal, if the demand for money becomes more elastic, then the LM curve will become _______. In other words, a given rise in the interest rate will, in order for money market equilibrium to be preserved, be associated with a ________ rise in income. Select one: a. less elastic / smaller b. less elastic / larger c. more elastic / smaller d. more elastic / larger
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 5CQ
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Q2-20
Other things equal, if the demand for money becomes more elastic, then the LM curve will become _______.
In other words, a given rise in the interest rate will, in order for moneymarket equilibrium to be preserved, be associated with a ________ rise in income.
In other words, a given rise in the interest rate will, in order for money
Select one:
a. less elastic / smaller
b. less elastic / larger
c. more elastic / smaller
d. more elastic / larger
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