Changes in business inventories are:

When the price of beef rises, consumers switch consumption to substitutes such as chicken and fish, thereby decreasing the demand for beef

Indicate whether the statement is true or false

Based on our understanding of the IS-LM model that takes into account dynamics, we know that a reduction in the money supply will cause

A) an immediate drop in Y and immediate increase in i. B) an immediate increase in i and no initial change in Y. C) a gradual increase in i and gradual reduction in Y. D) none of the above