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As the IS Curve Becomes Flatter, We Know That

Question 36

Multiple Choice

As the IS curve becomes flatter, we know that:


A) a given change in the money supply will cause a smaller change in unemployment.
B) a given change in the money supply will cause a larger change in unemployment.
C) a given change in the money supply will cause the same change in unemployment.
D) the effectiveness of monetary policy depends on fiscal policy.
E) monetary policy becomes less effective.

Correct Answer:

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