As the IS curve becomes flatter, we know that A) a given ...

[Wadzanai]

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.

[heyhey123]

Answer to Question 1

B

Answer to Question 2

A

[Wadzanai]

Excellent

[alvinum]

TYSM