If the Central Bank Follows a Monetary Policy in Which

question 45

Multiple Choice

If the central bank follows a monetary policy in which it maintains a fixed interest rate,then

• A)the LM curve will get steeper.
• B)the IS curve will get steeper.
• C)the LM curve will become vertical.
• D)the LM curve will become horizontal.
• E)none of the above.

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Physical items produced and actions performed to fulfill the needs and wants of consumers.

Non-Renewable

Refers to natural resources or sources of energy that cannot be replenished within a human life span, such as fossil fuels and minerals, making them finite and exhaustible.

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Water located beneath the earth's surface in soil pore spaces and in the fractures of rock formations, a crucial source of fresh water for drinking, agriculture, and industry.