Suppose the Demand for Money Is NOT Very Sensitive to the Interest

question 43

Multiple Choice

Suppose the demand for money is NOT very sensitive to the interest rate.Given this information,we know that

• A)the IS curve should be relatively flat.
• B)the IS curve should be relatively steep.
• C)the LM curve should be relatively flat.
• D)the LM curve should be relatively steep.
• E)neither the IS nor the LM curve will be affected.

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