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Economics

In the case of monetary impotence without a horizontal LM curve, a rise in government expenditures

A) shifts the LM curve downward against a horizontal IS curve and so is of no help in raising output.

B) causes the IS curve to go from vertical to downward-sloping, thus raising output.

C) just causes us to move further down the vertical IS curve and so is of no help in raising output.

D) shifts the vertical IS curve to the right and thus increases output.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91231821

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