If Desired Investment Spending Is Relatively Sensitive to Changes in Interest

question 51

Multiple Choice

If desired investment spending is relatively sensitive to changes in interest rates, then monetary policy could be very useful because it would

• A)be very ineffective in reducing expenditure during inflationary periods and very ineffective in expanding expenditure during recessionary periods.
• B)be very effective in reducing expenditure during inflationary periods and very effective in expanding expenditure during recessionary periods.
• C)be very effective in reducing expenditure during inflationary periods and ineffective in expanding expenditure during recessionary periods.
• D)be somewhat effective in reducing expenditure during inflationary periods and very ineffective in expanding expenditure during recessionary periods.
• E)be very ineffective in reducing expenditure during inflationary periods and very effective in expanding expenditure during recessionary periods.

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Definitions:

Conflict-Theory

A theoretical framework in sociology that views social life as a competition among groups for limited resources.

Feminist Understandings

Interpretations or perspectives grounded in feminism, which emphasize equality between sexes and critique social structures that perpetuate gender inequalities.

Deviance

Behaviors or actions that violate social norms, including formally enacted rules as well as informal understandings of acceptable behavior.

Rate of Incarceration

The number of individuals within a population who are confined in a prison or jail per 100,000 of the population.