Figure 4-9

-In Figure 4-9 above,suppose LMA shifts to LMB.The distance from points A to L tells us
A)the change in income given zero interest responsiveness of Ap.
B)the change in income resulting from the interest rate falling to its value at point B.
C)how much the money supply increased in producing the LM shift.
D)the change in income that by itself raises the demand for money by as much as the money supply rose.

Question

Figure 4-9
 
-In Figure 4-9 above,suppose LMA shifts to LMB.The distance from points A to L tells us
A)the change in income given zero interest responsiveness of Ap. 
B)the change in income resulting from the interest rate falling to its value at point B. 
C)how much the money supply increased in producing the LM shift. 
D)the change in income that by itself raises the demand for money by as much as the money supply rose.

Quizplus · Accepted Answer

The distance from points A to L represents the change in income that by itself raises the demand for money by as much as the money supply rose, which is what causes the LM curve to shift from LMA to LMB.

Figure 4-9 -In Figure 4-9 Above,suppose LMA Shifts to LMB.The Distance from to LMB.The