Author Question: As the IS curve becomes flatter, we know that A) a given change in the money supply will cause a ... (Read 45 times)

Wadzanai · **on:** Jun 30, 2018

As the IS curve becomes flatter, we know that

A) a given change in the money supply will cause a larger change in output.
B) a given change in the money supply will cause a smaller change in output.
C) a given change in the money supply will cause the same change in output.
D) monetary policy becomes less effective.

Question 2

The steeper is the IS curve,

A) the more effective is monetary policy.
B) the less effective is monetary policy.
C) the effectiveness of monetary policy does not change.
D) a given change in the money supply will have a greater effect on output.