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I have these questions and i would appreciate it if you could help me with the right answers and the explanations. Note: intermediate macroeconomics chapter#24
I have these questions and i would appreciate it if you could help me with the right answers and the explanations.
Note: intermediate macroeconomics chapter#24 (History of Macro Theory )
A)As the IS curve becomes flatter, we know that
1-a given change in the money supply will cause the same change in output.
2-a given change in the money supply will cause a smaller change in output.
B)The flatter is the IS curve,
1-the less effective is monetary policy.
2-the effectiveness of monetary policy does not change.
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