The correct option is, (d) smaller, greater.
- The LM curve is steeper the smaller the interest sensitivity of money demand and the greater the effect of income on money demand.
<h3>What does a steeper LM curve mean?</h3>
- The LM curve will be steeper if the income-elasticity of the demand for money is higher and the interest-elasticity is lower.
- The LM curve is virtually vertical when the demand for money is generally indifferent to the interest rate.
<h3>What causes the LM curve to shift?</h3>
- The LM curve shifts right as a result of monetary stimulation, or boosting the money supply, leading to higher output and lower interest rates.
- The IS curve is shifted to the right by fiscal stimulus, or boosting government spending and/or lowering taxes, which raises interest rates while driving up output.
<h3>What is income sensitivity of money demand?</h3>
- The greater the interest rate, as the minus sign suggests, the more likely people are to invest their money rather than have it available for consumption.
- The income sensitivity of real money demand and the interest sensitivity of real money demand are the two variables that are regulated by sensitivity coefficients.
Learn more about LM curve here:
brainly.com/question/26430220
#SPJ4
Answer:
Governments can regulate businesses
Explanation:
I hope that this helped :)
Answer:
The correct answer is the option E: consumers are encouraged to buy domestically produced goods.
Explanation:
To begin with, in order to the economy to grow the country must encourage the consumers to buy more domestically produced goods so that the when the demand increases so does that income of the firms and that impacts in the demand that the companies do as well. Therefore that the country, and that is, the firms and the government, should encourage the increase of consumption from the buyers in order to intend to experience an economic growth.
The correct option is - B (16, 22)
Explanation:
<u>Given:
</u>
Demand function = P = -Q +38
Supply function = P = Q – 6
<u>In order to find the equilibrium, the demand function must be equal to the supply function.
</u>
Thus, putting the demand function equal to the supply function , we get,
Q – 6 = -Q + 38
Solving the above equations, Q = 22
Now, putting the value of Q in demand function in order to find out the value of P,
P = -22 + 38
P = 16
Thus, Option B is correct (16, 22)
Answer:
Vehicle registration
Explanation:
Vehicle registration reoccurs annually, the other costs are one time.
