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A Financial Innovation,such as Money Market Mutual Funds,which Increases the Liquidity

Question 14

Multiple Choice

A financial innovation,such as money market mutual funds,which increases the liquidity of alternatives to money,would


A) increase money demand,shifting the LM curve up.
B) increase money demand,shifting the LM curve down.
C) decrease money demand,shifting the LM curve up.
D) decrease money demand,shifting the LM curve down.

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