The LM curve will shift to the right, if there is a(n):
A) decrease in money supply.
B) increase in real money demand.
C) increase in money supply.
D) increase in output.
Ans: C) increase in money supply.
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When total revenue and price are directly related, demand is
A) unit-elastic. B) inelastic. C) elastic. D) not related.
If I buy 3 cups of coffee, paying $1 for each cup, and I would have been willing to pay up to $3 for the first cup, up to $2 for the second cup, and up to $1 for the third cup, then my consumer surplus is:
a. $6. b. $5. c. $3. d. $2. e. $1.
Other things remaining unchanged, which of the following is a determinant of the quantity supplied of a good?
a. The cost of inputs used in production b. The price of the product c. The income levels of consumers d. The price expectations of producers e. The preferences of consumers
A change in taxes of a given amount affects an individual's consumption spending by less than that amount, because the marginal propensity to consume is less than 1
a. True b. False Indicate whether the statement is true or false