Monetary Policy Can Have the Largest Impact on Desired Aggregate

question 18

Multiple Choice

Monetary policy can have the largest impact on desired aggregate expenditures when the

• A)investment demand curve and money demand function are both relatively flat.
• B)investment demand curve and money demand function are both relatively steep.
• C)investment demand curve is relatively steep and the money demand function is relatively flat.
• D)investment demand curve is relatively flat and the money demand function is relatively steep.
• E)None of the above - monetary policy is always equally effective.

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