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Q. |
In which of the following situations will an increase in the money supply have no effect upon output? |
A. | LM is steeply sloped and IS is steeply sloped |
B. | LM is vertical and IS is steeply sloped |
C. | LM is steeply sloped and IS is vertical |
D. | LM is relatively flat as is IS |
Answer» C. LM is steeply sloped and IS is vertical |
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