Refer to the graph shown. The economy is in both a short-run and a long-run equilibrium at:

According to the modern Keynesian view,

a. both the IS and the LM curve slopes are in the intermediate or normal range, where both monetary and fiscal policies are effective in controlling income. b. only the IS curve slope is in the intermediate or normal range and, therefore, only fiscal policy is effective in controlling income. c. only the LM curve slope is in the intermediate or normal range and, therefore, only monetary policy is effective in controlling income. d. neither the IS nor the LM curve slopes are in the intermediate or normal range and, therefore, neither monetary nor fiscal policies are effective in controlling income.

Suppose the nominal interest rate is zero. In this situation, the present discounted value of a finite sequence of future payments is equal to which of the following?

A) zero B) the sum of the all payments divided by the rate of inflation C) the average value of each payment D) the sum of all payments E) the square of the sum of all payments