Examlex

Solved

If Money Demand Does Not Depend on the Interest Rate

question 74

Multiple Choice

If money demand does not depend on the interest rate, then the LM curve is ______ and ______ policy has no effect on output.


Definitions:

MPC

Marginal Propensity to Consume, a metric that represents the proportion of an additional unit of income that is spent on consumption.

Stock Market

A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly held companies take place.

Initial Public Offerings

The process where a private company offers shares of stock to the public for the first time.

Investment

The allocation of resources, usually financial, in expectation of future returns.

Related Questions