Other Things Equal, If the If the Demand for Money

question 4

Multiple Choice

Other things equal, if the if the demand for money becomes more elastic, then the LM Curve will become __________, i.e., a given rise in the interest rate will, in order for Money market equilibrium to be preserved, be associated with a __________ rise in Income.

• A) less elastic; smaller
• B) less elastic; larger
• C) more elastic; smaller
• D) more elastic; larger

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Definitions:

Dial Caliper

A precision measuring tool that uses a dial to indicate the distance between its jaws, enabling highly accurate measurements of length, depth, or diameter.

Component's

Pertaining to the individual parts or elements that make up a larger system or assembly.

Inside Size

The interior dimensions of a space or object, often referring to the habitable room or cargo space within a vehicle or any container.

Depth

The distance from the top or surface of something to its bottom or farthest point from the surface, often measured vertically.