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Why is the MP curve a horizontal line? Group of answer choices The market for money does not depend on the federal funds rate. The

Why is the MP curve a horizontal line?

Group of answer choices

The market for money does not depend on the federal funds rate.

The model assumes that the Fed is able to keep the real interest rate constant despite increases or decreases in the inflation gap.

The model assumes that monetary policy does not affect real output.

The model assumes that the Fed is able to keep the real interest rate constant despite increases or decreases in the output gap.

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