In the ISLM framework, monetary policy has the greatest impact on equilibrium income
A) when money demand = money supply.
B) when money supply is infinitely elastic.
C) when the interest rate is high.
D) the less is the interest-sensitivity of money demand.
D
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Suppose you were competing in a sealed-bid, second-price auction for a Vermeer painting, which you happen to value at $100,000 . What bid should you submit?
a. Exactly $100,000 b. Somewhat lower than $100,000 depending on the number of other bidders c. Somewhat higher than $100,000 depending on the number of other bidders d. Cannot say which of a, b, or c is right without further information
To allow heuristic models to provide us with a better understanding of economic problems, it is important to:
A. increase the amount of vocabulary in your model. B. empirically test your data. C. always stick with the deductive method. D. never bring mathematics into the model.