If the demand for money was totally independent of the interest rate,the LM curve would ________ and monetary policy would ________.
A) have a positive slope,quite powerful
B) have a positive slope,impotent
C) be vertical,quite powerful
D) be vertical,impotent
Correct Answer:
Verified
Q127: Figure 4-9 Q128: According to Paul Krugman,during the past decade Q129: In a "liquidity trap," Q130: A steep LM curve implies that Q131: Monetary restraint and fiscal stimulus will Q133: If spending is NOT responsive to changes Q134: If a 200 billion dollar increase in Q135: An increase in the real money supply Q136: Which of the following events occur when Q137: In a liquidity trap,the
A)the demand for money
A)an increase
A)both lower
A)IS curve is vertical.
B)IS
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