If the demand for money was totally independent of the interest rate, the LM curve would ________ and monetary policy would ________
A) have a positive slope, quite powerful
B) have a positive slope, impotent
C) be vertical, quite powerful
D) be vertical, impotent
C
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Refer to Resource Supply/Demand. What does area D represent?
The following questions refer to the accompanying graph, which shows the supply and demand for a resource. The owner of the resource is receiving the price P0 and is providing the quantity Q0.
a. The value that Q0 units of the resource gives to demanders.
b. The revenue generated from selling Q0 units of the resource.
c. The rent that resource owner earns from providing Q0 units.
d. The minimum payment needed for the resource owner to supply Q0 units.
An economic growth model
A) explains changes in nominal GDP per capita in the short run. B) explains changes in real GDP per capita in the short run. C) explains changes in real GDP per capita in the long run. D) explains changes in nominal GDP per capita in the long run.
As one moves southeast on a linear demand curve
A. demand becomes more inelastic. B. demand becomes more elastic. C. elasticity stays the same. D. one cannot tell what happens to elasticity unless the slope of demand is known.
To say that a given welfare program is means-tested implies that:
A. in order to qualify, one must have the means. B. the size of the payment reflects the mean value of consumption based on family size. C. the more income one earns, the smaller the size of the benefit. D. in order to qualify, one must show that one means to find a job.