A decrease in the money supply would cause the IS curve to ________ and the LM curve to ________
A) shift down and to the left; be unchanged
B) shift down and to the left; shift up and to the left
C) be unchanged; shift up and to the left
D) be unchanged; shift down and to the right
C
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Generalizing using statistical discrimination is:
A. an irrational response and always leads to loss of surplus. B. a rational response to being on the wrong end of an information asymmetry. C. a rational response, although government always steps in to prevent it. D. All of these statements are true.
The term transfer payments refers to
A. Federal income taxes. B. Money that is transferred between savings and checking accounts. C. Additional profits transferred to monopolies as a result of their market power. D. Payments to individuals that are not in exchange for current goods and services being produced.