1. What condition is required for the LM schedule to be vertical? What condition is required for the alternative extreme case, in which the LM schedule becomes nearly horizontal over a range? 2. Why...

1. What condition is required for the LM schedule to be vertical? What condition is required for the alternative extreme case, in which the LM schedule becomes nearly horizontal over a range?

2. Why are we assured that when the money and product markets are in equilibrium, the bond market will also be in equilibrium?