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) .
Correct Answer:
Verified
Correct Answer:
Verified
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