Suppose that County A has a money demand function given by Md= 50+ 2Y- 5r, while Country Bhas a money demand function given by Md= 50+ 2Y-25r. From this, we can conclude thatA)the LM in A is steeper than in BB)the LM in B is steeper than in AC)the LM in A is vertical while the LM in B is horizontalD)Country A is more "Keynesian" whereas Country B is more "classical" in structure.

Suppose that County A has a money demand function given by Md= 50+ 2Y- 5r, while Country Bhas a money demand function given by Md= 50+ 2Y-25r. From this, we can conclude thatA)the LM in A is steeper than in BB)the LM in B is steeper than in AC)the LM in A is vertical while the LM in B is horizontalD)Country A is more "Keynesian" whereas Country B is more "classical" in structure.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter26: Monetary Policy

Section: Chapter Questions

Problem 5SQP

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