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Even in the Event of a Horizontal LM Curve,classicists Argued

Question 104

Multiple Choice

Even in the event of a horizontal LM curve,classicists argued that government intervention would NOT be required if the IS curve shifts in response to changes in


A) the price level (the Pigou effect) .
B) the unemployment level (the real balance effect) .
C) interest rate (the Keynes effect) .
D) exchange rate (the expectations effect) .

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