The monetary policy multiplier is large if
A) the LM-curve is steep and the IS-curve is flat
B) the LM-curve is flat and the IS-curve is steep
C) money demand is very interest sensitive
D) investment is very interest insensitive
E) both money supply and money demand are very interest sensitive
Correct Answer:
Verified
Q22: Which of the following will result in
Q23: Monetary policy becomes more effective as
A)the interest
Q24: In the money sector, other things being
Q25: In an IS-LM model, an increase in
Q26: The LM-curve becomes steeper if
A)money demand becomes
Q28: In an IS-LM model, an increase in
Q29: In an IS-LM model, a decrease in
Q30: If money demand becomes more income elastic,
Q31: If we change the assumption that money
Q32: In an IS-LM model, an increase in
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