As the LM curve becomes steeper, an unexpected increase in ...

[bcretired]

As the LM curve becomes steeper, an unexpected increase in consumer confidence
 
  A) will cause a relatively large increase in output and relatively large increase in the interest rate.
  B) will cause a relatively small increase in output and relatively small increase in the interest rate.
  C) is more likely to cause stock prices to rise.
  D) is more likely to cause stock prices to fall.

Question 2

Suppose the economy is currently operating on both the LM curve and the IS curve. Which of the following is true for this economy?
 
  A) Production equals demand.
  B) The quantity supplied of bonds equals the quantity demanded of bonds.
  C) The money supply equals money demand.
  D) Financial markets are in equilibrium.
  E) all of the above

[Perkypinki]

Answer to Question 1

D

Answer to Question 2

E

[bcretired]

Correct answers!

[Perkypinki]

Great! Please up vote