1. In a Keynesian system, if the money demand function is given by Md = 135 +0.25Y-10r %3D then a 10-unit increase in the quantity of money will cause the LM schedule to shift to the right by a. 135 units b. 40 units c. 10 units d. 100 units e. 0 unit

1. In a Keynesian system, if the money demand function is given by Md = 135 +0.25Y-10r %3D then a 10-unit increase in the quantity of money will cause the LM schedule to shift to the right by a. 135 units b. 40 units c. 10 units d. 100 units e. 0 unit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. In a Keynesian system, if the money demand function is given by
M = 135 + 0.25Y-10r
then a 10-unit increase in the quantity of money will cause the LM schedule to shift to
the right by
a.
135 units
b.
40 units
с.
10 units
d.
100 units
e.
0 unit

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