As the LM Curve Becomes Steeper,an Unexpected Decrease in Consumer

question 51

Multiple Choice

As the LM curve becomes steeper,an unexpected decrease in consumer confidence

• A)will cause a relatively large increase in output and relatively large increase in the interest rate.
• B)will cause a relatively small increase in output and relatively small increase in the interest rate.
• C)is more likely to cause stock prices to rise.
• D)is more likely to cause stock prices to fall.

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Definitions:

Contract

A contract between multiple parties that holds legal enforceability.

Rent of $100

A specific lease payment amount agreed upon for the use of property, typically mentioned in rental agreements or leases.

Occupy

To take possession and control of a place, usually for political or protest purposes, without the permission of the owner.

Defective Product

A product that is not fit for its intended use due to manufacturing flaws, design errors, or misleading labels.