According to the modern Keynesian view,
A) both the IS and the LM curve slopes are in the intermediate or normal range,where both monetary and fiscal policies are effective in controlling income.
B) only the IS curve slope is in the intermediate or normal range and,therefore,only fiscal policy is effective in controlling income.
C) only the LM curve slope is in the intermediate or normal range and,therefore,only monetary policy is effective in controlling income.
D) neither the IS nor the LM curve slopes are in the intermediate or normal range and,therefore,neither monetary nor fiscal policies are effective in controlling income.
Correct Answer:
Verified
Q20: In the liquidity trap case where the
Q21: Exogenous variables in the IS-LM model variables
Q22: The slope of the LM curve has
Q23: If the government wanted to reduce interest
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