Multiple Choice
Looking only at the asset market,an increase in output would cause
A) the LM curve to shift down.
B) the LM curve to shift up.
C) an increase in real interest rates along the LM curve.
D) a decrease in real interest rates along the LM curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q43: Use the IS-LM model to determine the
Q60: An increase in wealth<br>A)increases real money demand
Q61: A temporary increase in government purchases causes
Q62: Oil prices have risen temporarily,due to political
Q64: The LM curve is derived from<br>A)investment-saving market.<br>B)money
Q66: Suppose Bank of Canada sells government bonds
Q67: For each of the following changes,which equilibrium
Q68: A tax cut on capital will<br>A)shift the
Q70: A contractionary monetary policy combined with an
Q99: To reach general equilibrium,the price level adjusts