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CSecure https//bridgew.blackboard.com/webapps/assessment/take/launch jsp?course assessment j QUESTION 22 If the LM curve is horizontal, this means that e monetary policy will be ineffective O fiscal policy will be ineffective e the velocity is constant o it is impossible for the Fed to change the money supply QUESTION 23 The current federal income tax system, as is, is an example of a(n) O fiscal policy o monetary policy e automatic stabilizer forecasting policy QUESTION 24 What is the primary reason why macro economists attempt to forecast future economic conditions? e because automatic stabilizers do not work at all O so that they can best predict how to make profits in the stock market O because there are lags when using stabilization policies o in order to persuade the public that monetary policy is better than fiscal policy QUESTION 25 A major topic of debate among economists is whether economic policy should be conducted according to rules or democracy passivity cycles discretion Click Save and Submit to save and submit. Click Save All Answers to save all answers syllabus (2).docx nsyllabus (L).docx

Explanation / Answer

22. If LM curve is horizontal, an increase in money supply has no effect on the interest rate and monetary policy becomes ineffective.

Answer- option A

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