If the central bank targets the money stock, then a negative shock to

If the central bank targets the money stock, then a negative shock to money demand will

a. shift the LM schedule to the right and income will rise above the target level.
b. shift the LM schedule up and income will fall below the target level.
c. not shift the LM schedule and, therefore, will not displace income from the target level.
d. None of the above

ANSWER

A