If money demand does not depend on the interest rate then
A) the LM curve if vertical and fiscal policy is ineffective.
B) the LM curve is horizontal and fiscal policy is ineffective.
C) the LM curve is horizontal and horizontal has no effect on output.
D) the LM curve is vertical and monetary policy is ineffective.
Correct Answer:
Verified
Q20: Discuss the merits of a money growth
Q21: The Taylor rule relates
A)inflation rates to unemployment
Q22: In today's Fed,its primary strategy is to
A)target
Q23: An index constructed by Alberto Alesina and
Q24: The voting members of the Open Market
Q26: Which of the following is not considered
Q27: On October 6,1979,the Federal Reserve abandoned the
Q28: Which of the following statements is (are)correct?
Q29: Monetary policy decisions,such as the target growth
Q30: The Federal funds rate
A)is the interest rate
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