In the simple liquidity preference model, if the money demand curve is elastic, then:
A) small changes to the money supply will cause large changes to the interest rate.
B) only large changes to the money supply will cause large changes to the interest rate.
C) small changes to the money supply will cause insignificant changes to the interest rate.
D) even large changes to the money supply will cause small changes to the interest rate.
Correct Answer:
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