The quantity theory of money argues that, in the long run, the percentage change in money will create an equal percentage change in

Using a production possibilities frontier, economic growth is illustrated by a

A) point inside the curve. B) point on the curve. C) movement from one point on the curve to another point on the curve. D) rightward shift of the curve.

Monetary policy will be

a. less effective the higher the interest elasticity of investment, and thus the steeper the IS schedule. b. more effective the higher the interest elasticity of investment, and thus the flatter the IS schedule. c. equally effective regardless of whether or not the interest elasticity of investment is higher or lower, or the IS curve is flatter or steeper. d. more effective with a vertical IS curve.