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:

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Business Transaction

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A digital ledger displayed on a screen, used to record financial transactions in accounting software.