Business, 17.01.2021 23:50 theh301234

Suppose that investment (l) in the goods market is not responsive to the interest rate (that is, I do not depend on the interest rate at all). Then

Select one:
a. The lS curve is a vertical line and
monetary policy does not affect output in the IS-LM model.
b. The iS curve is a vertical line and
monetary policy is very effective in
raising output
c. The IS curve is a horizontal line and monetary policy does not affect output in the IS-LM model.
d. The IS curve is a horizontal line and monetary policy is very effective in raising output.

= The lS curve is a vertical line and
monetary policy does not affect output in the IS-LM model.

Answers: 1

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Suppose that investment (l) in the goods market is not responsive to the interest rate (that is, I d...

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