The LM curve automatically shifts to the right when the intersection point of the IS and LM curves occurs at a point
A) beyond full-employment income.
B) in the liquidity trap.
C) less than full-employment income.
D) where planned saving is less than planned investment.
Correct Answer:
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Q16: Monetarists argue that the demand for money
Q17: The expenditure multiplier is greatest when the
A)
Q18: If investment is interest-insensitive,
A) monetary policy has
Q19: If velocity is constant and equal to
Q20: Monetarists argue that stability in the economy
Q22: If investment spending is interest-sensitive and highly
Q23: If the economy is at full employment,
Q24: In a liquidity trap, expansionary monetary policy
Q25: Fluctuating interest rates tend to stabilize real
Q26: The expenditure multiplier in the ISLM framework
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