Why does a horizontal lm curve imply that fiscal policy has


a. Why does a horizontal LM curve imply that fiscal policy has the same effects on the economy as those derived in Keynesian Model (horizontal AS)?

b. What are the implications of a horizontal LM curve for the link between goods market and asset market?

c. Under what circumstances might the LM curve be horizontal?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Why does a horizontal lm curve imply that fiscal policy has
Reference No:- TGS01469379

Expected delivery within 24 Hours