If savings does not depend upon the interest rate, then

a. the IS curve is vertical.
b. the IS curve is horizontal.
c. the LM curve is horizontal.
d. the IS curve is still downward sloping.
e. none of the above.


D

Economics

You might also like to view...

If the idea of herd instinct is true, it suggests that the:

A. efficient-market hypothesis doesn't always hold. B. efficient-market hypothesis does, in fact, hold. C. inefficient-market hypothesis doesn't always hold. D. inefficient-market hypothesis does, in fact, hold.

Economics

Economists assume that business firms have many goals, and profit maximization is just one of them.

Answer the following statement true (T) or false (F)

Economics

How did the gold standard contribute to the spreading of the Great Depression of the 1930s?

What will be an ideal response?

Economics

The law of diminishing marginal utility gives us a deeper understanding of the downward-sloping demand curve because

A. Consumers are willing to pay a higher price for a greater quantity. B. Consumers do not respond to a change in price. C. Consumer tastes change due to advertising. D. When marginal utility is high, we are willing to pay a higher price.

Economics