Suppose the Demand for Money Becomes Less Sensitive to Changes

question 124

Multiple Choice

Suppose the demand for money becomes less sensitive to changes in the interest rate.In moving along an LM curve,an increase in income must be accompanied by a ________ change in the interest rate than before,meaning that the LM curve has become ________.

• A)greater,steeper
• B)greater,flatter
• C)smaller,steeper
• D)smaller,flatter

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Definitions:

Autonomous Morality

The stage in moral development where individuals recognize that rules and laws are created for the good of the collective and can be questioned and modified.

Social Structure

The organized pattern of social relationships and social institutions that together compose society.

Relational Scheme

Cognitive structures that allow individuals to understand and organize their relationships with others.

Peer Rejection

The process or experience of being excluded, ignored, or dismissed by peers or peer groups, which can have various negative psychological and emotional effects on an individual.