Other things equal, if the demand for money becomes more elastic, then the LM curve will become _______. In other words, a given rise in the interest rate will, in order for money market equilibrium to be preserved, be associated with a ________ rise in income. Select one: a. less elastic / smaller b. less elastic / larger c. more elastic / smaller d. more elastic / larger
Other things equal, if the demand for money becomes more elastic, then the LM curve will become _______. In other words, a given rise in the interest rate will, in order for money market equilibrium to be preserved, be associated with a ________ rise in income. Select one: a. less elastic / smaller b. less elastic / larger c. more elastic / smaller d. more elastic / larger
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q2-20
Other things equal, if the demand for money becomes more elastic, then the LM curve will become _______.
In other words, a given rise in the interest rate will, in order for moneymarket equilibrium to be preserved, be associated with a ________ rise in income.
In other words, a given rise in the interest rate will, in order for money
Select one:
a. less elastic / smaller
b. less elastic / larger
c. more elastic / smaller
d. more elastic / larger
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