📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

        If investment is not responding to change in interest

      rate, then which of the following is true?
      A IS is vertical and monetary policy is ineffective Correct Answer Incorrect Answer
      B IS is vertical and monetary policy is effective Correct Answer Incorrect Answer
      C LM is vertical and monetary policy is ineffective Correct Answer Incorrect Answer
      D LM is vertical and monetary policy is effective Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      If investment is not responding to change in interest rate, then IS is vertical and monetary policy is ineffective in increasing the output level.

      Practice Next
      More Research Questions
      ask-question