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 Chapter 9 ?

b. What is happening in this case in terms of Figure 10-3 ?

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

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Econometrics: Why does a horizontal lm curve imply that fiscal policy has
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