If money demand is extremely sensitive to changes in the interest rate, then the LM curve is almost and policy is very effective on output. O a. vertical; monetary Ob. horizontal; fiscal c.vertical; fiscal d. horizontal; monetary
If money demand is extremely sensitive to changes in the interest rate, then the LM curve is almost and policy is very effective on output. O a. vertical; monetary Ob. horizontal; fiscal c.vertical; fiscal d. horizontal; monetary
Chapter1: Making Economics Decisions
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Economics

Transcribed Image Text:If money demand is extremely sensitive to changes in the interest rate, then
the LM curve is almost
and
policy is very effective on output.
a. vertical; monetary
Ob. horizontal; fiscal
Ocvertical; fiscal
O d. horizontal; monetary
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