Multiple Choice
Other things equal, if the if the demand for money becomes more elastic, then the LM Curve will become __________, i.e., a given rise in the interest rate will, in order for Money market equilibrium to be preserved, be associated with a __________ rise in Income.
A) less elastic; smaller
B) less elastic; larger
C) more elastic; smaller
D) more elastic; larger
Correct Answer:
Verified
Correct Answer:
Verified
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