If the Demand Function for Money Is M/P = 0

question 73

Multiple Choice

If the demand function for money is M/P = 0.5Y - 100r and if M/P increases by 100, then the LM curve for any given interest rate shifts to the:

• A) left by 100.
• B) left by 200.
• C) right by 100.
• D) right by 200.

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Definitions:

Eyewitnesses

Individuals who have directly seen an event or crime take place and can provide testimony about what they observed.

Testimony

An oral or written statement that a person gives based on their personal knowledge, experience, or observation, often used as evidence in courts.

Serial Position Effect

A cognitive phenomenon whereby items at the beginning and end of a list are more likely to be remembered than those in the middle.

Encoding Specificity Effect

The principle that recall is more effective when retrieval conditions are similar to the conditions under which information was encoded.