With a vertical LM curve,an increase in the money supply can be matched by an equal increase in money demand only through ________,which causes monetary policy to be particularly ________.

Question

Quizplus · Accepted Answer

With a vertical LM curve, the interest rate does not change, so an increase in money supply can only be matched by a rise in income, making monetary policy strong.

With a Vertical LM Curve,an Increase in the Money Supply