Answered: An increase in the money stock has no…

An increase in the money stock has no effect on equilibrium income whenever the a. IS curve is horizontal. b. LM curve is vertical. c. IS curve is vertical. d. LM curve is horizontal.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 7TY

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Question

An increase in the money stock has no effect on equilibrium income whenever the

IS curve is horizontal.

LM curve is vertical.

IS curve is vertical.

LM curve is horizontal.

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