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In the Basic Closed-Economy ISLM Model,as the Interest Sensitivity of Money

Question 8

Multiple Choice

In the basic closed-economy ISLM model,as the interest sensitivity of money demand increases,fiscal policy has ________ effect on output and monetary policy has ________ effect on output.


A) less;less
B) more;more
C) more;less
D) less;more

Correct Answer:

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