B. If investment does not depend on the interest rate, the IS

1 ———-- JV“ unLvMAuva—n ....- r-v-vw (b): (C), and ( ) on the graph you drew inpart (a). Label them points B, C, and D. 5. Determine whether each of the following state—ments is true or false, and explain why. For eachtrue statement, discuss whether there is anythingunusual about the impact of monetary and fiscalpolicy in that special case. a. If investment does not depend on the interestrate, the LM curve is horizontal.