If the central bank increases money supply, then real money balances will rise and
A) so will the interest rate
B) the interest rate will fall
C) the LM-curve will shift to the left
D) the IS-curve will shift to the right
E) asset prices will fall
Correct Answer:
Verified
Q34: Which of the following is the equation
Q35: If there is a decrease in government
Q36: In an IS-LM model, a decrease in
Q37: People will hold more money if they
Q38: The LM-curve
A)shows the relationship between the interest
Q40: In an IS-LM model, if the government
Q41: An increase in the fiscal policy multiplier
Q42: If investment becomes more sensitive to changes
Q43: Which of the following is the equation
Q44: An increase in the interest sensitivity of
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