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Please show your answer clearly, thanks. If the demand for money is very sensitive to the interest rate, then: 0 the IS curve should be

Please show your answer clearly, thanks.

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If the demand for money is very sensitive to the interest rate, then: 0 the IS curve should be relatively steep. O the LM curve should be relatively flat. 0 the LM curve should be relatively steep. O the IS curve should be relatively flat. 0 neither the IS nor the LM curve will be affected. During the late 19905, Japan experienced reductions in the GDP deflator. Given this information, we know with certainty that: 0 real GDP did not change during these periods. 0 both real GDP and the overall price level decreased during these periods. 0 the overall price level in Japan increased during these periods. O the overall price level in Japan decreased during these periods. O real GDP fell during these periods. In an economy in which individuals do not hold currency, which of the following expressions represents the money multiplier? O 1/6 0 10 0 1/(1 c) O 1/(1 .9) O 1/6

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