a.must have become flatter.

b.must have become steeper.

c.must have remained unchanged.

d.may have become flatter or steeper depending on the extent of money supply increase.

6 points

QUESTION 10

1. The economy of United Kingdom is expected to experience a decrease in aggregate real income in 2021, but no change in the price level or money supply. As a result of this decrease in aggregate real income, the LM curve of the U.K. economy

a.will become flatter.

b.will become steeper.

c.will not be affected.

d.may become flatter or steeper.