If We Have a Normal IS-Curve but a Horizontal LM-Curve

question 11

Multiple Choice

If we have a normal IS-curve but a horizontal LM-curve,

• A)fiscal policy is the most effective way to reduce unemployment
• B)fiscal policy is at its weakest in reducing unemployment
• C)monetary policy can aid fiscal policy in reducing unemployment
• D)monetary policy is the most effective way to reduce unemployment
• E)neither fiscal nor monetary policy is effective in reducing unemployment

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Definitions:

Crime Prone

Having a higher likelihood or predisposition to engage in criminal activities or behaviors.

Age Cohort

A category of people born in the same range of years.

Baby Boomer

A term used to describe a person born during the post-World War II baby boom between the years 1946 and 1964, often associated with a generation having a significant impact on economy and culture.

Incarceration Rates

The number of individuals confined in a prison or jail per 100,000 population within a specific geographic area.