Intermediate Macroeconomics 3. LM Curve Monetary policy and LM curve slope Flat LM curve –Keynesian view, monetary policy ineffective –Increase in mon
{"Image DocumentName": "3. LM Curve Monetary policy and LM curve slope", "Image ImageDescription": "Flat LM curve. Keynesian view, monetary policy ineffective. Increase in money supply has little or no effect on the interest rate. Money demand adjusts to match money supply. No change in interest rate means no change in investment and aggregate spending. Steep LM curve. Classical view, monetary policy effective. Increase in money supply lowers the interest rate, which increases investment spending. Intermediate Macroeconomics.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}