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If the Demand Function for Money Is M/P = 0

Question 73

Multiple Choice

If the demand function for money is M/P = 0.5Y - 100r and if M/P increases by 100, then the LM curve for any given interest rate shifts to the:

A) left by 100.
B) left by 200.
C) right by 100.
D) right by 200.

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