When the LM curve is vertically sloped, the __________ in income due to a change in the money supply will be __________ when the LM curve is positively sloped, but not vertical.
A) decrease; greater
B) decrease; smaller
C) increase; greater
D) increase; smaller
Correct Answer:
Verified
Q2: With velocity constant, an increase in the
Q3: With velocity constant and equal to 2,
Q4: Monetary policy has no effect on the
Q5: If velocity is constant and equal to
Q6: If investment becomes more interest-sensitive,
A) monetary policy
Q7: Monetary policy has no effect on equilibrium
Q8: If you believe that the LM curve
Q9: If you believe that the LM curve
Q10: If the LM function is vertical, then
Q11: Monetarists argue that aggregate demand is
A) vertical.
B)
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