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Non-Activists Believe That the IS Curve Is

Question 20

Multiple Choice

Non-activists believe that the IS curve is


A) very flat and that real output is sometimes very sensitive to monetary policy in the short run.
B) very steep and that real output is sometimes very sensitive to monetary policy in the short run.
C) very flat and that real output is not sensitive to monetary policy in the short run.
D) very steep.

Correct Answer:

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