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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 ________.


Definitions:

Telegraphic Speech

A stage in language development where children speak in short, simple combinations of words, omitting smaller parts of speech.

Semantics

Semantics is the study of meaning in language, including the analysis of words, phrases, signs, and symbols and their relation to what they stand for or represent.

Morphemes

The smallest grammatical units in a language that carry meaning. Morphemes can be full words (free morphemes) or elements that can't stand alone (bound morphemes).

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially in terms of word order.

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