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An increase in wealth (a).increases real money demand and the real interest rate, and shifts the LM curve up. (b).decreases real money demand and the
An increase in wealth
(a).increases real money demand and the real interest rate, and shifts theLMcurve up.
(b).decreases real money demand and the real interest rate, and shifts theLMcurve down.
(c).increases real money demand and the real interest rate, but does not shift theLMcurve.
(d).decreases real money demand and the real interest rate, but does not shift theLMcurve down.
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