Multiple Choice
Suppose k = 0.25. With a $10 billion decrease in the money supply, the LM curve shifts
A) to the left by $40 billion.
B) to the left by $4 billion.
C) to the left by $2.5 billion.
D) to the right by $0.25 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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