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    Question

    In the IS-LM model, what happens if the demand for money

    (money holding) increases, all else being equal?
    A Interest rates fall, and output increases. Correct Answer Incorrect Answer
    B Interest rates rise, and output decreases. Correct Answer Incorrect Answer
    C Interest rates fall, and output decreases. Correct Answer Incorrect Answer
    D Interest rates rise, and output increases. Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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