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You Have Just Read That the Bank of Canada Has

Question 84

Multiple Choice

You have just read that the Bank of Canada has increased the money supply to avoid a recession.For a given price level,you would expect the LM curve to


A) shift up as the real money supply falls.
B) shift up as the real money supply rises.
C) shift down as the real money supply falls.
D) shift down as the real money supply rises.

Correct Answer:

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