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Business, 03.04.2021 01:00 chanevelyn2

Suppose the government wants to change the level of output. If the LM curve is horizontal, then a. monetary policy is completely ineffective, whereas fiscal policy is highly effective.
b. fiscal policy is completely ineffective, whereas monetary policy is highly effective.
Again, suppose the government wants to change the level of output. If the IS curve is vertical, then
a. monetary policy is completely ineffective, whereas fiscal policy is highly effective.
b. fiscal policy is completely ineffective, whereas monetary policy is highly effective.

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