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.
c
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Explain why the Social Security system faces problems. Discuss the possible solutions to these problems
What will be an ideal response?
Suppose that an industry is characterized by a few firms and price leadership. We would expect that:
A. price would equal marginal cost. B. price would equal average total cost. C. price would exceed both marginal cost and average total cost. D. marginal revenue would exceed marginal cost.