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In which of the following situations will an increase in the money supply have no effect upon output?

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Question:

In which of the following situations will an increase in the money supply have no effect upon output?

A.

LM is steeply sloped and IS is steeply sloped

B.

LM is vertical and IS is steeply sloped

C.

LM is steeply sloped and IS is vertical

D.

LM is relatively flat as is IS

Answer» c. LM is steeply sloped and IS is vertical

Note: The above multiple-choice question is for all general and Competitive Exams in India.