An Increase in the Money Supply Will Cause

question 42

Multiple Choice

An increase in the money supply will cause

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

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Definitions:

Sensory Adaptation

The reduction or disappearance of sensory responsiveness when stimulation is unchanging or repetitious.

Odor

A distinctive smell, especially an unpleasant one, perceived by the olfactory senses.

Perception

The process of recognizing, organizing, and interpreting sensory information.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's ability to focus.