After 1616, Virginia shifted more and more scarce resources out of food production and into tobacco production. Hence, the economic cost of tobacco production included the sacrifice of food production.
Indicate whether the statement is true or false
Question 2
Which of the following is true about the LM curve?
a. Along the LM curve, actual expenditure is equal to planned expenditure.
b. The LM curve slopes upward and is consistent with a given level of income.
c. The LM cuve slopes upward for a given level of the money supply.
d. The LM curve is horizontal in the classical model.
e. none of the above.
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