If the interest responsiveness of business firms investment is great then the
A) IS curve is flatter and the AD curve is flatter.
B) IS curve is steeper and the AD curve is steeper.
C) IS curve is horizontal and the AD curve is perfectly vertical.
D) IS curve is horizontal and the AD curve is perfectly horizontal.
Correct Answer:
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Q1: A steeper LM curve implies that the
Q2: If the marginal leakage rate is small,then
Q4: The slope of the AD curve is
Q5: If money demand relative to the level
Q6: A rise in the nominal money supply
Q7: A doubling of the nominal money supply
Q8: A fall in the price level causes
Q9: The slope of the SAS curve is
Q10: Let the government increase lump-sum taxes.The aggregate
Q11: A flatter IS curve implies that the
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