In the Keynesian Theory,an Exogenous Decrease in the Demand for Money

question 41

Multiple Choice

In the Keynesian theory,an exogenous decrease in the demand for money shifts

• A)the LM curve to the right.
• B)the LM curve to the left.
• C)the IS curve to the right.
• D)the IS curve to the left.
• E)neither the IS or LM curves.

---

Definitions:

Dysfunctional Competition

A harmful form of rivalry among businesses that may involve unethical practices, leading to reduced efficiency and harm to consumers or the industry.

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Imputed Interest Rate

An estimated interest rate used to calculate the present value of future cash flows, when no explicit interest rate is provided.

Residual Income

Income that remains after all costs and expenses, including the cost of capital, have been subtracted from net revenues.