Based on the IS-LM model, when Mds is perfectly inelastic to interest rate, then A. an...

  

Transcribed Image Text:

Based on the IS-LM model, when Mds is perfectly inelastic to interest rate, then A. an expansionary fiscal policy is fully effective. B. an expansionary fiscal policy is less effective. C. an expansionary monetary policy is fully effective. D. an expansionary monetary policy is less effective. Based on the IS-LM model, when Mds is perfectly inelastic to interest rate, then A. an expansionary fiscal policy is fully effective. B. an expansionary fiscal policy is less effective. C. an expansionary monetary policy is fully effective. D. an expansionary monetary policy is less effective.

Answer rating: 100% (QA)

As we can see in the figure above Money Demand curve is vertical because mone... View the full answer