Active macroeconomic policy would move to close an expansionary gap by decreasing aggregate demand

If a straight-line demand curve slopes down, price elasticity will:

a. remain the same at all points on the demand curve. b. change between any two points along the demand curve. c. always be greater than one. d. always equal one. e. always be less than one.

For monetary policy to be effective in changing planned investment spending:

a. interest rates must not be responsive to changes in the money supply. b. interest rates must be sensitive to changes in Gross Domestic Product. c. investment must be sensitive to changes in interest rates d. investment must be sensitive to changes in the price level. e. interest rates must be sensitive to changes in the price level.