Figure 4-9 -In Figure Above, Suppose LMA Shifts to LMB. the Distance

question 37

Multiple Choice

Figure 4-9
-In figure above, suppose LMA shifts to LMB. the distance from points A to L tells us

• A) the change in income given zero interest responsiveness of Ap.
• B) the change in income resulting from the interest rate falling to its value at point B.
• C) how much the money supply increased in producing the LM shift.
• D) the change in income that by itself raises the demand for money by as much as the money supply rose.

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