If investment becomes more interest-sensitive,
A) monetary policy will have a smaller impact on the equilibrium interest rate.
B) monetary policy will have a greater impact on equilibrium income.
C) fiscal policy will have a smaller impact on equilibrium income.
D) fiscal policy will have a larger impact on the equilibrium interest rate.
B
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Arcadia faced very high levels of unemployment for three consecutive years. This caused social disruptions, riots, and finally the replacement of the government. In this scenario, unemployment has resulted in _____
a. a loss of lifetime earnings b. a loss of human capital c. the deterioration of health d. a loss of social cohesion
Describe the type of international monetary system that is currently in use. What advantages do proponents of this type of system cite in support of its use? What disadvantages do its opponents cite?