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In an IS-LM model, if we assume that money demand is completely insensitive to changes in the interest rate A.) interest rates cannot be lowered
In an IS-LM model, if we assume that money demand is completely insensitive to changes in the interest rate
A.) interest rates cannot be lowered by fiscal policy
B.) fiscal policy can neither change the level of output nor the composition of GDP
C.) monetary policy can change income
D.) monetary policy is totally ineffective in changing the rate of interest
E.) the economy cannot be stimulated by fiscal or monetary policy
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