If the money demand function is given by Md=10+0.2Y-10r then a 10 unit increase in money supply will cause the LM schedule to shift. a) to the right by 10 units b) to the right by 50 units c) to the left by 40 units d) to the left by 50 units e) to the right by 40 units

If the money demand function is given by Md=10+0.2Y-10r then a 10 unit increase in money supply will cause the LM schedule to shift. a) to the right by 10 units b) to the right by 50 units c) to the left by 40 units d) to the left by 50 units e) to the right by 40 units

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter20: Monetary Policy

Section: Chapter Questions

Problem 6SQP

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Question

100%

If the money demand function is given by M^d=10+0.2Y-10r then a 10 unit increase in money supply will cause the LM schedule to shift.

a) to the right by 10 units

b) to the right by 50 units

c) to the left by 40 units

d) to the left by 50 units

e) to the right by 40 units

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