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.
B
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Gordon notes that the average growth rate of labor productivity between 1996 and 2004 was ________ percent, and the average reached ________ percent in 2003-04
A) 3; 3.5 B) 2; 205 C) 1.7; 3.2 D) 2; 1.5
A firm's marginal rate of return on investment curve shows the amount
a. saved by the firm at each alternative interest rate b. invested by the firm at each alternative interest rate c. saved by the firm at each alternative rate of time preference d. invested by the firm at each alternative marginal resource cost e. saved by the firm at each alternative marginal revenue product of investment