If Private Sector Investment Does Not Respond Much to Interest

question 155

Multiple Choice

If private sector investment does not respond much to interest rate changes, then

• A) there will be more crowding out when expansionary policies are undertaken.
• B) there will be less crowding out when expansionary policies are undertaken.
• C) fiscal policy will be less effective than monetary policy.
• D) monetary policy will be more effective than fiscal policy.

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Definitions:

Scrotum

Saclike structure of a male that houses the testes.

Sperm Duct

Also known as the vas deferens, it is a tube that carries sperm from the epididymis to the ejaculatory ducts in anticipation of ejaculation.

Testes

The male reproductive organs that produce sperm and hormones, primarily testosterone.

Vesicular Follicle

A mature ovarian follicle that contains a fully grown ovum, or egg cell, surrounded by a fluid-filled cavity.