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:

Acknowledged

means recognized or accepted as being true or existing, often officially or formally.

Lodger

A person who has the use of property without actual or exclusive possession of it.

Direct Owner

Refers to the person or entity that has legal possession and full control over a property or asset.

License

A grant of permission to do a particular thing, to exercise a certain privilege, to carry on a particular business, or to pursue a certain occupation; an agreement that gives no property right or interest in land but merely allows the licensee to do certain acts that would otherwise be a trespass; a privilege granted by a state or city.