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Which statement regarding the LM curve is incorrect?A country's economy is close to full employment. The government then decides to launch a tax cut program.

Which statement regarding the LM curve is incorrect?A country's economy is close to full employment. The government then decides to launch a tax cut program.

orice level (????) and interest rate (i) in the short run?

a. We can expect ???? to remain unchanged, ???? to remain unchanged, and ???? to remain unchanged.

b. None of the alternatives is correct.

c. We can expect ???? to increase, ???? to increase, and ???? to incrgase.

d. We can expect ???? to remain unchanged, ???? to remain unchanged, and ???? to increase.

e. We can expect ???? to decrease, ???? to decrease, and ???? to decrease.

a. The LM curve shifts to the left when the central bank increases the reserve requirements for commercial

banks.

b. The LM curve implies that high interest rates can be beneficial to the economy.

c. The LM curve shifts to the left when the central bank buys government bonds from commercial banks.

d. The LM curve shifts to the left when the general price index increases.

e. The LM curve shifts to the left when the central bank sets a higher discount rate.

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