Which of the Following Statements Is Consistent with a Given

question 65

Multiple Choice

Which of the following statements is consistent with a given (i.e.,fixed) LM curve?

• A)a reduction in the interest rate causes investment spending to increase
• B)a reduction in the interest rate causes money demand to decrease
• C)a reduction in the interest rate causes an increase in the money supply
• D)an increase in output causes an increase in demand for goods
• E)an increase in output causes an increase in money demand

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