The natural rate of interest is the interest rate that
A) is determined by the intersection of the IS and LM curves.
B) equates investment and saving at full employment.
C) equates the supply and demand for money.
D) is changed only by changes in the money supply.
Correct Answer:
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Q35: A horizontal LM curve implies that the
Q48: An upward-sloping LM curve implies that the
Q49: The natural rate of interest falls with
Q50: Most economists believe the LM curve to
Q51: Monetary policy is impotent when the LM
Q52: The rate of interest that equates saving
Q54: In the IS-LM model, the expenditure multiplier
Q55: A relatively flat LM curve implies that
Q56: Fiscal policy is impotent when the LM
Q57: A relatively steep LM curve implies that
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