Figure 4-9
-In figure above, suppose LMA shifts to LMB. the distance from points A to L tells us
A) the change in income given zero interest responsiveness of Ap.
B) the change in income resulting from the interest rate falling to its value at point B.
C) how much the money supply increased in producing the LM shift.
D) the change in income that by itself raises the demand for money by as much as the money supply rose.

Question

Figure 4-9 
-In figure above, suppose LMA shifts to LMB. the distance from points A to L tells us
A) the change in income given zero interest responsiveness of Ap. 
B) the change in income resulting from the interest rate falling to its value at point B. 
C) how much the money supply increased in producing the LM shift. 
D) the change in income that by itself raises the demand for money by as much as the money supply rose.

Quizplus · Accepted Answer

The distance from points A to L represents the change in income that increases the demand for money by the same amount as the increase in the money supply, causing the LM curve to shift.

Figure 4-9 -In Figure Above, Suppose LMA Shifts to LMB. the Distance