Monetary Policy Will Be Ineffective If

question 42

Multiple Choice

Monetary policy will be ineffective if

• A)The demand for money is very sensitive to changes in the interest rate,but the investment demand is not.
• B)The demand for money and investment demand are both very sensitive to changes n the interest rate.
• C)Interest rates are sensitive to the quantity of money supplied,and investment spending is sensitive to changes in the interest rate.

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Definitions:

Social Factors

encompass a wide range of societal influences like culture, norms, values, and social structures that affect individual behavior and psychological development.

Authoritative Parents

A parenting style characterized by a high degree of responsiveness and demandingness, combining firm but fair discipline with support and affection towards children.

Competent

Being competent refers to having the necessary ability, knowledge, or skill to perform a task or fulfill a role effectively and efficiently.

Promote Autonomy

To support or encourage self-directing freedom and especially moral independence in actions and decisions.