If Money Demand Becomes More Income Elastic, Then the LM-Curve

question 50

Multiple Choice

If money demand becomes more income elastic, then the LM-curve will

• A)shift parallel to the right
• B)shift parallel to the left
• C)become steeper
• D)become flatter
• E)become flatter and shift to the right

Assess the impact of project risks and operational changes on project valuation.

Identify and calculate the tax implications of selling or disposing of assets.

Understand the function and mechanisms of the Federal Reserve System.

Identify the composition and responsibilities of the Federal Reserve Open Market Committee (FOMC).

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Definitions:

Market Demand

The combined volume of a good or service that consumers in a marketplace are ready and capable of buying at assorted prices.

Marginal Cost

The funding necessary to manufacture an extra unit of a good or service.

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.

Market Price

The going rate at which a product or service is available for buying or selling in a particular market.