The economy tends to be less stable with a __________ LM curve causing interest rates to be rather __________ to shifts in the IS curve.
A) steeper; sensitive
B) steeper; insensitive
C) flatter; sensitive
D) flatter; insensitive
Correct Answer:
Verified
Q76: Suppose that IS and LM intersect at
Q77: Starting from full employment output, fiscal policy
Q78: Suppose that IS and LM intersect at
Q79: "A drop in government expenditures lowered output
Q80: When the economy is at full employment
Q82: The amount of investment demand at each
Q83: The economy tends to be more stable
Q84: Suppose the IS curve shifts back and
Q85: The amount of investment demand at each
Q86: Suppose the IS curve shifts back and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents