If the Money Demand Function Is Given by M^d =

Multiple Choice

If the money demand function is given by M^d = 10 + 0.2Y − 10r then a 10-unit increase in the quantity of money will cause the LM schedule to shifts to

A) to the right by 10 units.
B) the right by 50 units.
C) to the left by 40 units.
D) to the left by 50 units.
E) to the right by 40 units.