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Answer the following true, false, or uncertain with an explanation motivating your answer (you may use graphs and math to support your answer). a. If
Answer the following true, false, or uncertain with an explanation motivating your answer (you may use graphs and math to support your answer).
a. If neither investment nor consumption depends on the interest rate, then the IS curve is vertical and monetary policy has no effect on output.
b. Regulators can solve the moral hazard problem of rescuing a financial firm (by the government) in the midst of a financial crisis if they allow firm's equity holders be wiped out, but protect firm's creditors.
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