In the Simple Liquidity Preference Model, Changes to the Money

question 40

Multiple Choice

In the simple liquidity preference model, changes to the money supply will have a smaller effect on interest rates the:

• A) flatter, more elastic is the money demand curve.
• B) flatter, less elastic is the money demand curve.
• C) steeper, more elastic is the money demand curve.
• D) steeper, less elastic is the money demand curve.

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