Sau 10 years

[vineetasharma]

In a closed economy IS-LM framework, Fiscal policy will be more effective if
a) responsivity of the demand for money to income is high.
b) responsivity of demand for money to interest is low.
c) responsivity of demand for money to income is low.
d) Both a) and b)

its b

[vineetasharma]

Thanks🙆

[hariom arora]

i think its c as LM become flatter and output increases more then what case a and b predict with steeper LM

[deepshika1]

I think its b

[hariom arora]

CAN YOU PLEASE EXPLAIN??