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

Multiple Choice

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

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