A Change That Increases the Real Money Supply Relative to Real

question 12

Multiple Choice

A change that increases the real money supply relative to real money demand causes

• A)the LM curve to shift down.
• B)the LM curve to shift up.
• C)the IS curve to shift down.
• D)the IS curve to shift up.

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Definitions:

Loss-Minimizing Strategy

An approach aimed at reducing the amount of loss incurred in a business or investment.

AVC

The average variable cost is calculated by dividing the total variable costs by the produced output quantity.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of output.

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost per unit.