Multiple Choice
People have increased their expectations of inflation from 3% to 5%,directly causing
A) a relative increase in real money demand,shifting the LM curve up.
B) a relative decrease in real money demand,shifting the LM curve down.
C) a relative increase in real money demand,shifting the LM curve down.
D) a relative decrease in real money demand,shifting the LM curve up.
Correct Answer:
Verified
Correct Answer:
Verified
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