Multiple Choice
Banks decide to raise the interest rate they pay on checking accounts from 1% to 2%.This action would
A) increase money demand, shifting the LM curve up and to the left.
B) increase money demand, shifting the LM curve down and to the right.
C) decrease money demand, shifting the LM curve up and to the left.
D) decrease money demand, shifting the LM curve down and to the right.
Correct Answer:
Verified
Correct Answer:
Verified
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