Other Things Equal, an Expected Deflation Can Change Demand By

Multiple Choice

Other things equal, an expected deflation can change demand by:

A) lowering the demand for money, thus shifting the LM curve.
B) increasing the demand for money, thus shifting the LM curve.
C) raising the real interest rate for any given nominal interest rate, thus reducing desired investment.
D) lowering the real interest rate for any given nominal interest rate, thus increasing desired investment.