An increase in the marginal propensity to hold money
A) results in an fall in the interest rate and a decline in income.
B) raises the interest rate and lowers income.
C) results in a fall in the interest rate and a rise in income.
D) raises both the interest rate and income.
Correct Answer:
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Q22: The slope of the LM curve has
Q23: If the government wanted to reduce interest
Q24: Figure 7-4 Q25: According to the modern Keynesian view, Q26: In the case where the LM schedule Q28: If the demand for money is Md Q29: The difference between the simple Keynesian model Q30: If the government raised taxes and reduced Q31: If the level of government spending rises Q32: In the IS-LM model,an increase in government
A)both the
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