As the LM Curve Becomes Steeper, an Unexpected Increase in Consumer

Multiple Choice

As the LM curve becomes steeper, an unexpected increase in consumer confidence:

A) is more likely to cause stock prices to rise.
B) is more likely to keep stock prices constant.
C) will cause a relatively small increase in output and relatively small increase in the interest rate.
D) will cause a relatively large increase in output and relatively large increase in the interest rate.
E) is more likely to cause stock prices to fall.