If the demand for money is highly sensitive to the interest rate,
A) the LM curve is relatively flat.
B) the IS curve is relatively steep.
C) the LM curve is relatively steep.
D) investment spending will also be highly sensitive to the interest rate.
Correct Answer:
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Q47: Which of the following is the correct
Q48: Which of the following equations correctly describes
Q49: A change in the inflation rate will
A)not
Q50: When the interest sensitivity of the demand
Q51: An unexpected decrease in oil prices would
A)shift
Q53: If the demand for real money balances
Q54: A decline in real output causes the
Q55: At any point along the LM curve,
A)the
Q56: The slope of the LM curve is
Q57: The LM curve slopes upward to the
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