In the ISLM framework, monetary policy has the greatest impact on equilibrium income when
A) money demand = money supply.
B) money demand is infinitely elastic.
C) the interest rate is low.
D) the investment function is highly interest-sensitive.
D
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Managed float exchange systems were abandoned with the implementation of the gold standard
Indicate whether the statement is true or false
How do recent current account deficits compare to GNP and to past ratios?
What will be an ideal response?
When the aggregate demand curve shifts to the left against a vertical aggregate supply curve, the price level should __________ unless, as __________ argue, prices may have rigidities
A) fall; Keynesians B) fall; Monetarists C) rise; Keynesians D) rise; Monetarists
Explain why economists consider it to be one of the economic functions of government to provide a legal system
What will be an ideal response?