The LM-curve becomes steeper if
A) money demand becomes less sensitive to changes in the interest rate
B) money demand becomes more sensitive to changes in the interest rate
C) investment becomes more sensitive to changes in the interest rate
D) investment becomes less sensitive to changes in the interest rate
E) money demand becomes less sensitive to changes in income
Correct Answer:
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Q21: In an IS-LM model, an increase in
Q22: Which of the following will result in
Q23: Monetary policy becomes more effective as
A)the interest
Q24: In the money sector, other things being
Q25: In an IS-LM model, an increase in
Q27: The monetary policy multiplier is large if
A)the
Q28: In an IS-LM model, an increase in
Q29: In an IS-LM model, a decrease in
Q30: If money demand becomes more income elastic,
Q31: If we change the assumption that money
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