The LM curve automatically shifts to the right 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.
A
Economics
You might also like to view...
Using the above figure, which of the following is TRUE?
A) Axis 1 is typically called the y-axis. B) Axis 1 is also known as the origin. C) Axis 2 is typically called the x-axis. D) Point b is known as the origin.
Economics
According to the cost-benefit principle if a change generates $50,000 in gains and $45,000 in losses,
A) it is desirable. B) the gain is not large enough to justify the change. C) the desirability depends on who gains and who loses. D) it is a Pareto improvement.
Economics