Multiple Choice
Which of the following statements are true?
A) The smaller the responsiveness of money demand to a change in the interest rate,the steeper the LM curve.
B) The larger the responsiveness of money demand to a change in the interest rate,the flatter the LM curve.
C) If money demand is not responsive to a change in the interest rate,the LM curve will be horizontal.
D) Both A and B.
Correct Answer:
Verified
Correct Answer:
Verified
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