On the
conventional IS - LM diagram, LM curve shifts to LM1. Then which of the following statements
are true ?
(1)
Liquidity effect is r0 r1
(2)
Liquidity effect is r0 r2
(3)
Liquidity effect is r2 r1
(4) None of
the above
Answer -
(1) Liquidity effect is r0 r1
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