Other Things Equal, a Rise in Income in a Country

Multiple Choice

Other things equal, a rise in income in a country will lead to __________ in the demand for money in the country and consequently to __________ in the country's LM curve.

A) an increase; a leftward (or vertically upward) shift
B) an increase; a rightward (or vertically downward) shift
C) a decrease; a leftward (or vertically upward) shift
D) a decrease; a rightward (or vertically downward) shift