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If the IS Curve Is Relatively Steep,then

Question 11

Multiple Choice

If the IS curve is relatively steep,then


A) there can be no long-run tradeoff between inflation and unemployment.
B) monetary policy cannot be very effective in changing GDP.
C) rational expectations theory is probably correct.
D) Ricardian equivalence most likely holds.
E) budget deficits will not affect future capital accumulation.

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