In an IS-LM model, if we assume that money demand is completely insensitive to changes in the interest rate,
A)fiscal policy cannot change the level of output but will change the composition of GDP
B)monetary policy is totally ineffective in changing the level of output
C)interest rates cannot be lowered by fiscal or monetary policy
D)the economy cannot be stimulated by fiscal or monetary policy
E)monetary policy can change income but not interest rates

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The Answer of In an IS-LM model, if we assume that money demand is completely insensitive to changes in the interest rate,
A)fiscal policy cannot change the level of output but will change the composition of GDP
B)monetary policy is totally ineffective in changing the level of output
C)interest rates cannot be lowered by fiscal or monetary policy
D)the economy cannot be stimulated by fiscal or monetary policy
E)monetary policy can change income but not interest rates

In an IS-LM Model, If We Assume That Money Demand