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    Exam 7: Keynesian System III: Policy Effects in the Is-Lm Model
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    In Japan,interest Rates Are Close to Zero
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In Japan,interest Rates Are Close to Zero

Question 6

Question 6

Multiple Choice

In Japan,interest rates are close to zero.As a result,Keynesians would argue that money demand


A) has become much more interest rate elastic.
B) will shift upward.
C) has become much less interest rate elastic.
D) will shift downward.
E) will remain unchanged.

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