Business, 29.03.2021 17:00, akaumbulu

Determine whether each of the following statements is true or false. a. If investment does not depend on the interest rate, the LM curve is horizontal. True False b. If investment does not depend on the interest rate, the IS curve is vertical. False True c. If money demand does not depend on the interest rate, the IS curve is horizontal. False True d. If money demand does not depend on the interest rate, the LM curve is vertical. True False e. If money demand does not depend on income, the LM curve is horizontal. True False f. If money demand is extremely sensitive to the interest rate, the LM curve is horizontal. True False g. Suppose the government wants to change the level of output. If the LM curve is horizontal, then fiscal policy is completely ineffective, whereas monetary policy is highly effective. monetary policy is ineffective, whereas fiscal policy is highly effective. h. Again, suppose the government wants to change the level of output. If the IS curve is vertical, then monetary policy is completely ineffective, whereas fiscal policy is highly effective. fiscal policy is comple

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Determine whether each of the following statements is true or false. a. If investment does not depen...