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Suppose the Demand for Money Becomes Less Sensitive to Changes

question 124

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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 ________.


Definitions:

Classical Antipsychotics

Drugs (such as Thorazine and Haldol) that block dopamine receptors. These drugs seem to treat many positive symptoms of schizophrenia.

Negative Symptoms

In psychiatry, refers to the absence of normal behaviors or functions, such as lack of emotional expression, motivation, or speech, often associated with schizophrenia.

Schizophrenia

is a mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Antipsychotic Medications

Drugs used to manage psychosis, including delusions, hallucinations, paranoia, or disordered thought, primarily in conditions like schizophrenia and bipolar disorder.

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