If changes in monetary policy are going to help stabilize the economy, they must

As the economy nears the end of a recession, which of the following would we most likely see?

A) further decreases in consumer spending B) falling wages relative to output prices C) increased spending on capital goods by firms D) increasing interest rates

The LM curve will become steeper when

a. there is a larger money demand increase per unit increase in income. b. money demand is less sensitive to the interest rate. c. money demand is more sensitive to the interest rate. d. Both a and b e. Both a and c