A)
vertical if full employment exists.
B)
horizontal when there is considerable unemployment in the economy.
C)
downsloping because of the interest-rate, real-balances, and foreign purchases effects.
D)
downsloping because production costs decrease as real output rises.
vertical if full employment exists.
B)
horizontal when there is considerable unemployment in the economy.
C)
downsloping because of the interest-rate, real-balances, and foreign purchases effects.
D)
downsloping because production costs decrease as real output rises.
ANSWER:
C)
downsloping because of the interest-rate, real-balances, and foreign purchases effects.