📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    In case of full Crowding out effect what is the shape of

    the LM curve
    A Horizontal Correct Answer Incorrect Answer
    B Vertical Correct Answer Incorrect Answer
    C Upward Sloping Correct Answer Incorrect Answer
    D Curvilinear Correct Answer Incorrect Answer

    Solution

    In case of vertical LM, government expenditure will not increase output. [Full Crowding out].

    Practice Next
    ask-question