If the Demand Function for Money Is M / P

question 33

Multiple Choice

If the demand function for money is M / P = 0.2Y - 200r, and if M / P increases by 100, then the LM curve for any given interest rate shifts to the:

• A)left by 100.
• B)left by 500.
• C)right by 100.
• D)right by 500.

---

Definitions:

Socialism

A political and economic theory advocating for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Manufacturing

The process of producing goods using labor, machines, tools, and chemical or biological processing or formulation.

Labor Force

The total number of people employed or seeking employment in a country or region.

Global Economy

The interconnected worldwide economic activities that determine the production, distribution, and consumption of goods and services across different countries.