If investment becomes more interest-sensitive,
A) monetary policy will have a smaller impact on the equilibrium interest rate.
B) monetary policy will have a greater impact on equilibrium income.
C) fiscal policy will have a smaller impact on equilibrium income.
D) fiscal policy will have a larger impact on the equilibrium interest rate.
Correct Answer:
Verified
Q1: When the LM curve is vertically sloped,
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
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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