Suppose that the demand for money were to become less sensitive to changes in the interest rate. You would then draw
A) a flatter LM curve and a more vertical aggregate demand curve.
B) flatter LM and aggregate demand curves.
C) a flatter aggregate demand curve and a more vertical LM curve.
D) a flatter LM curve but no corresponding change in the slope of the aggregate demand curve.
E) a steeper LM curve but no corresponding change in the slope of the aggregate demand curve.
Correct Answer:
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