MACROECONOMICS
10th Edition
ISBN: 9781319106072
Author: Mankiw
Publisher: MAC HIGHER
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Question
Chapter 12, Problem 5PA
(a)
To determine
LM curve is horizontal when the investment does not depend on the rate of interest.
(b)
To determine
IS curve is vertical when the investment does not depend on the rate of interest.
(c)
To determine
IS curve is horizontal when the money demand does not depend on the rate of interest.
(d)
To determine
LM curve is vertical when the investment does not depend on the rate of interest.
(e)
To determine
LM curve is horizontal when money demand does not depend on the income.
(f)
To determine
LM curve is horizontal when money demand is extremely sensitive to the interest rate.
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