Consider the Monetary Transmission Mechanism

question 43

Multiple Choice

Consider the monetary transmission mechanism. Other things being equal, the flatter is the investment demand function, the

• A)less responsive is the demand for money to a change in interest rates.
• B)more responsive is desired investment to a change in interest rates.
• C)less responsive is the interest rate to a change in the money supply.
• D)more responsive is the demand for money to a change in interest rates.
• E)less responsive is desired investment to a change in interest rates.

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Definitions:

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