Which of the following would cause a shift in the LM curve?
A) The government decreases Medicare benefits.
B) The government buys commercial paper.
C) The city government increases the sales tax.
D) All of the above.
Correct Answer:
Verified
Q38: A decrease in the money supply causes
Q39: Movement up along the AD curve is
Q40: If the monetary authority wants to mitigate
Q41: The price level will fall if output
Q42: Fiscal policy cannot raise output above the
Q44: The AD curve
A) represents IS-LM equilibrium points.
B)
Q45: A monetary policymaker is better off targeting
Q46: Crowding out refers to a diminishment of
Q47: The LM curve will shift to the
Q48: The LM curve shifts because of changes
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