Monetary Policy Will Be

question 37

Multiple Choice

Monetary policy will be

• A)less effective the higher the interest elasticity of investment,and thus the steeper the IS schedule.
• B)more effective the higher the interest elasticity of investment,and thus the flatter the IS schedule.
• C)equally effective regardless of whether or not the interest elasticity of investment is higher or lower,or the IS curve is flatter or steeper.
• D)more effective with a vertical IS curve.

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Characterized by careful choice; involving the selection of the best or most suitable.

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