Refer to Figure 22-1. Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

The slope of the LM curve will be steeper the __________ is the income-sensitivity of the demand for money and the __________ is the interest-sensitivity of the demand for money

A) less; less B) less; greater C) greater; less D) greater; greater

To increase the money supply, the Fed purchases government securities from banks, paying for them with new reserves

a. True b. False Indicate whether the statement is true or false