In an IS-LM framework, a decrease in money supply will lead to
A) an increase in aggregate money demand
B) an increase in both income and the interest rate
C) an increase in the interest rate and a decrease in income
D) a decrease in the size of the monetary policy multiplier
E) both A and C
Correct Answer:
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Q28: In an IS-LM model, an increase in
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Q31: If we change the assumption that money
Q32: In an IS-LM model, an increase in
Q34: Which of the following is the equation
Q35: If there is a decrease in government
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Q38: The LM-curve
A)shows the relationship between the interest
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