Solved

If the Central Bank of an Economy Follows a Policy

Question 18

Essay

If the central bank of an economy follows a policy of interest rate targeting,or maintaining a fixed interest rate,then what will happen to the slope of the LM curve? Draw a graph to illustrate.

Correct Answer:

verifed

Verified

The LM curve will be flat at t...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions