As the IS Curve Becomes Flatter, We Know That

question 30

Multiple Choice

As the IS curve becomes flatter, we know that:

• A) a given change in the money supply will cause a smaller change in unemployment.
• B) a given change in the money supply will cause a larger change in unemployment.
• C) a given change in the money supply will cause the same change in unemployment.
• D) the effectiveness of monetary policy depends on fiscal policy.
• E) monetary policy becomes less effective.

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