If the LM Curve Is Vertical,then

question 52

Multiple Choice

If the LM curve is vertical,then

• A)there is partial "crowding out" of an increase in government expenditures.
• B)the increase in the money supply will have no impact on the level of real GNP.
• C)the demand for money is highly sensitive to the interest rate.
• D)the velocity of money is constant.

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