This paper circulates around the core theme of Explain why each of the following statements is true. Discuss the impact of monetary and fiscal policy in each of these special cases. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Explain why each of the following statements is true. Discuss the
impact of monetary and fiscal policy in each of these special cases.
a. If investment does not depend on the interest rate, the IS curve is vertical.
b. If money demand does not depend on the interest rate, the LM curve is vertical.
c. If money demand does not depend on income, the LM curve is horizontal.
d. If money demand is extremely sensitive to the interest rate, the LM curve is horizontal.
