Link between goods market and asset market

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Reference no: EM131091328

a. Why does a horizontal LM curve imply that fiscal policy has the same effects on the economy as those derived in Keynesian Model (horizontal AS)?

b. What are the implications of a horizontal LM curve for the link between goods market and asset market?

c. Under what circumstances might the LM curve be horizontal?

Reference no: EM131091328

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