A Change That Increases Real Money Demand Relative to the Real

question 53

Multiple Choice

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

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

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Definitions:

Upward Counterfactual

Imagining a better outcome than what actually occurred, often leading to feelings of dissatisfaction or motivation for improvement.

Downward Counterfactual

Thought processes where individuals imagine worse alternatives to events that have occurred, often leading to feelings of relief or contentment.

Stable Internal

Refers to internal, enduring attributes or traits of a person that are consistent across different situations and over time.

Unstable External

Contexts or environments that are unpredictable and change frequently, affecting behavior or performance.