The probably effect of introducing an increased number of automatic teller machines is to
A)increase money demand, shifting the LM curve up and to the left.
B)increase money demand, shifting the LM curve down and to the right.
C)decrease money demand, shifting the LM curve up and to the left.
D)decrease money demand, shifting the LM curve down and to the right.

Question

Quizplus · Accepted Answer

Introducing an increased number of automatic teller machines would increase the availability and accessibility of cash, making it easier for people to withdraw cash and make transactions without needing to visit a bank in person. This would reduce the demand for money, as people would need to carry less cash on-hand. The decrease in money demand would shift the LM curve down and to the right.

The Probably Effect of Introducing an Increased Number of Automatic