As the LM Curve Becomes Steeper,an Unexpected Decrease in Consumer

question 51

Multiple Choice

As the LM curve becomes steeper,an unexpected decrease in consumer confidence

• A)will cause a relatively large increase in output and relatively large increase in the interest rate.
• B)will cause a relatively small increase in output and relatively small increase in the interest rate.
• C)is more likely to cause stock prices to rise.
• D)is more likely to cause stock prices to fall.

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Definitions:

Bounded

Being enclosed within specific limits or boundaries.

Unitary

Pertaining to being a single or unified entity without division, often used in different contexts to denote oneness or singleness.

Separation

The process or state of being apart from something or someone, often used to describe the emotional process of detaching from a person, place, or thing.

Earlier

Occurring before a specified time or event.