On the conventional IS - LM diagram, LM curve shifts to LM1. Then which of the following statements are true ?




























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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