Monetary policy will be effective in changing the gross domestic product of a nation only if:
a. planned investment expenditures are autonomous
b. planned investment expenditures are sensitive to interest rates.
c. interest rates are unresponsive to changes in money supply.
d. interest rates are sensitive to changes in the price level.
e. planned investment expenditures are sensitive to interest rates.
b
Economics
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Briefly describe the three most widely followed stock indexes in the United States
What will be an ideal response?
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In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, at point 1
A) there is an excess demand for money. B) there is an excess supply of money. C) the demand for output exceeds Y1. D) the demand for output is below Y1.
Economics