8. (Show all correct answers) An increase in the inflation expected by the people (E), holding all other exogenous variables constant, will shift the LM curve: 6 A. upward and to the right. B. downward and to the right. C. Downward and by the same amount as the increase in E. D. downward and to the left. E. upward and to the left.

19. (Show all correct answers) A central bank can shift the LM curve to the right by: a. increasing the quantity of money b. decreasing the quantity of money c. convincing the people that it will ensure lower inflation in the foreseeable future d. convincing the people that it will ensure higher inflation in the foreseeable future