Which of the following influences the slope of the LM curve?
A) The interest-sensitivity of money demand
B) The interest-sensitivity of investment
C) The interest-sensitivity of government spending
D) The interest-sensitivity of saving
Correct Answer:
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Q12: The LM curve represents combinations of income
Q13: Assume that the Cambridge k = 0.2.
Q14: The slope of the LM curve will
Q15: Along an LM curve at higher interest
Q16: The transactions motive links money demand and
A)
Q18: Along an LM curve at lower interest
Q19: The slope of the LM is not
Q20: Along an LM curve at lower income
Q21: A falling GDP causes _ the money
Q22: In the IS curve, at _ income
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