People have reduced their expectations of inflation from 5% to 3%,directly causing
A)a relative increase in real money demand,shifting the LM curve up.
B)a relative decrease in real money demand,shifting the LM curve down.
C)a relative increase in real money demand,shifting the LM curve down.
D)a relative decrease in real money demand,shifting the LM curve up.

Question

Quizplus · Accepted Answer

A relative increase in real money demand will shift the LM curve up.

People Have Reduced Their Expectations of Inflation from 5% to 3%,directly