An Increase in the Interest Sensitivity of Money Demand Will

question 45

Multiple Choice

An increase in the interest sensitivity of money demand will

• A)increase the size of the monetary policy multiplier
• B)decrease the size of the monetary policy multiplier
• C)make fiscal policy less effective
• D)make the LM-curve steeper
• E)both A and D

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Definitions:

Assertive

Characterized by confidence and self-assurance in expressing opinions, needs, and desires, while respecting the rights of others.

Self-Control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Inductive Appeals

Arguments or appeals that move from specific instances to a general conclusion, often used in persuasive communication to infer broad principles from specific cases.

Power Assertion

A disciplinary technique that involves the use of authority or physical force to enforce rules and correct misbehavior.