If the Quantity of Money Demanded Is Not Affected by Changes

question 98

Multiple Choice

If the quantity of money demanded is not affected by changes in the interest rate,the LM curve is ________ and fiscal policy will be ________.

• A)horizontal;very effective
• B)horizontal;ineffective
• C)vertical;ineffective
• D)vertical;very effective

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Definitions:

Refund

The return of money previously paid for goods or services, typically as a result of dissatisfaction, defects, or the neeed for cancellation.

Culture Jamming

refers to the act of subverting mainstream cultural institutions or media to challenge or critique consumerism, politics, or social norms.

Buying Behaviour

Buying behaviour is the process by which consumers decide whether, what, when, from whom, and how much to purchase, influenced by psychological and social factors.

Ethical Products

Goods and services developed, produced, and distributed in a manner that is considered morally right and beneficial to society, often focusing on sustainability, fairness, and minimal harm.