In the ISLM model, under what conditions does monetary policy have the greatest impact on equilibrium income?

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In the ISLM model, under what conditions does monetary policy have the greatest impact on equilibrium income? Under what conditions is it completely ineffective?

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Principles of Money Banking and Financial Markets

ISBN: 978-0321339195

12th edition

Authors: Lawrence S. Ritter, William L. Silber, Gregory F. Udell

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Question Posted: Mar 06, 2018 09:31 AM

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In the ISLM model, under what conditions does monetary policy have the greatest impact on equilibrium income?

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Monetary policy is most effective when money demand is interestinsens...View the full answer

Principles of Money Banking and Financial Markets

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