If investment has a low sensitivity to the interest rate, the IS curve is rather __________, so that monetary policy has a __________ effect on GDP

Increases in human capital will promote economic growth.

a. true b. false

Other things equal, when the real interest rate rises, C, I and NX ________ and real GDP will ________ relative to potential GDP

A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease