In the IS-LM model, the expenditure multiplier is [1/(1-b) ] when the
A) LM curve is horizontal.
B) LM curve is upward-sloping.
C) LM curve is vertical.
D) IS curve is vertical.
Correct Answer:
Verified
Q35: A horizontal LM curve implies that the
Q49: The natural rate of interest falls with
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Q52: The rate of interest that equates saving
Q53: The natural rate of interest is the
Q55: A relatively flat LM curve implies that
Q56: Fiscal policy is impotent when the LM
Q57: A relatively steep LM curve implies that
Q59: If we are in a horizontal region
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