A government spending and taxation policy to achieve macroeconomic goals is known as:

If the interest elasticity of money demand is -0.1, by what percent does money demand change if the nominal interest rate rises from 2% to 3%?

A) -0.1% B) 5% C) 0% D) -5%

Corruption reduces growth most directly because governments invest in projects with low productivity

a. True b. False Indicate whether the statement is true or false