Monetary policy loses its effectiveness in all of the following situations EXCEPT
A) when the IS curve is vertical.
B) when the LM curve is nearly horizontal.
C) when interest rate controlled by the Fed reaches zero.
D) when the IS curve is horizontal.
D
Economics
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If the real interest rate in the United States decreases, foreign investors will ________ their demand for U.S. dollars because they desire to ________ fewer U.S. financial assets
A) increase; buy B) increase; sell C) decrease; buy D) decrease; sell
Economics
An increase in the wages paid to fishermen will have what effect on the fish market equilibrium?
A. Price will decrease, and quantity will decrease. B. Price will increase, and quantity will increase. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will decrease.
Economics