Even in the event of a horizontal LM curve, classicists argued that government intervention would not be required if the IS curve shifts in response to changes in
A) the price level (the Pigou effect).
B) the unemployment level (the real balance effect).
C) interest rate (the Keynes effect).
D) exchange rate (the expectations effect).

Question

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The Answer of Even in the event of a horizontal LM curve, classicists argued that government intervention would not be required if the IS curve shifts in response to changes in
A) the price level (the Pigou effect).
B) the unemployment level (the real balance effect).
C) interest rate (the Keynes effect).
D) exchange rate (the expectations effect).

Even in the Event of a Horizontal LM Curve, Classicists