This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the liquidity trap case where the LM schedule is nearly horizontal, a. both monetary and ... (Read 154 times)

tnt_battle

  • Hero Member
  • *****
  • Posts: 556
on: Jun 30, 2018
In the liquidity trap case where the LM schedule is nearly horizontal,
 
  a. both monetary and fiscal policy are highly effective.
  b. monetary and fiscal policy are ineffective.
  c. monetary policy is ineffective and fiscal policy is effective.
  d. fiscal policy is ineffective and monetary policy is effective.

Question 2

If money demand does not depend on the interest rate then
 
  a. the LM curve if vertical and fiscal policy is ineffective.
  b. the LM curve is horizontal and fiscal policy is ineffective.
  c. the LM curve is horizontal and horizontal has no effect on output.
  d. the LM curve is vertical and monetary policy is ineffective.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

shaquita

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


tnt_battle

  • Member
  • Posts: 556
Reply 2 on: Jun 30, 2018
:D TYSM

frankwu0507

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Venus fly trap Venus fly trap
Horizontal Pressure Gradients in the Upper Atmosphere Horizontal Pressure Gradients in the Upper Atmosphere
How to Solve an Ambiguous Case Triangle How to Solve an Ambiguous Case Triangle
Stretching the shoulder muscles with arm in horizontal flexion. Stretching the shoulder muscles with arm in horizontal flexion.
A sled having a certain initial speed on a horizontal surface comes to rest after traveling 10 ... A sled having a certain initial speed on a horizontal surface comes to rest after traveling 10 ...
Venus Fly Trap (Dionaea muscipuls) leaf closed on a fly. Venus Fly Trap (Dionaea muscipuls) leaf closed on a fly.
Video: Transferring genes into plants Animation

For a complete list of videos, visit our video library