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  3. Study Set
    Macroeconomics Study Set 11
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    Exam 5: Goods and Financial Marketsthe Is-Lm Model
  5. Question
    A Reduction in the Reserve Deposit Ratio,θ,will Most Likely Have
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A Reduction in the Reserve Deposit Ratio,θ,will Most Likely Have

Question 1

Question 1

Multiple Choice

A reduction in the reserve deposit ratio,θ,will most likely have which of the following effects?


A) a rightward shift in the IS curve
B) a leftward shift in the IS curve
C) an upward shift in the LM curve
D) a downward shift in the LM curve

Correct Answer:

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