When the LM curve is horizontal,
A) fiscal policy has no impact on equilibrium income.
B) fiscal policy has no impact on the equilibrium interest rate.
C) the economy is at full employment.
D) monetary policy has no impact on equilibrium income.
Correct Answer:
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Q78: The steeper the LM curve
A) the more
Q79: Starting from equilibrium and using the ISLM
Q80: Crowding out would not occur if the
A)
Q81: With a decrease in government expenditure we
A)
Q84: A higher price level causes us to
A)
Q85: When the LM curve is vertical,
A) fiscal
Q86: Monetary policy will be most effective when
A)
Q87: In the complete algebraic formulation of ISLM,
A)
Q88: Fiscal policy is most effective when
A) I
Q99: With a rise in government expenditure we
A)
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