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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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