The LM curve automatically shifts to the left when the intersection point of the IS and LM curves occurs at a point
A) beyond full-employment income.
B) in the liquidity trap.
C) less than full-employment income.
D) where planned saving is less than planned investment.
C
Economics
You might also like to view...
In the circular flow model, firms sell the services of factors of production to households
Indicate whether the statement is true or false
Economics
Assume that Coca-Cola and Pepsi-Cola are substitutes. A rise in the price of Coca-Cola will have which of the following effects on the market for Pepsi?
a. A movement down along the Pepsi demand curve. b. A rightward shift in the Pepsi demand curve. c. A movement up along the Pepsi demand curve. d. A leftward shift in the Pepsi demand curve.
Economics