In Figure 4-9 above, suppose LMA shifts to LMB. The distance from points A to L tells us
A) the change in income given zero interest responsiveness of Ap.
B) the change in income resulting from the interest rate falling to its value at point B?.
C) how much the money supply increased in producing the LM shift.
D) the change in income that by itself raises the demand for money by as much as the money supply rose.
D
You might also like to view...
Have redistribution programs decreased poverty since 1968? Discuss the role of program administrators and their bureaus in explaining your answer
What will be an ideal response?
The long run is referred to as a planning horizon because:
a. the firm has committed to a fixed quantity of at least one resource and the other resources are variable. b. the manager has selected the size of the firm that appears to be the least profitable and does not have the option of selecting any other plant size. c. the firm has not committed to a fixed quantity of any resource and has all options available to it. d. the manager has selected a scale of production. e. the firm is operating along a specific average-cost curve.