Economists Who Believe That Fiscal Policy Is More Potent Than

question 80

Multiple Choice

Economists who believe that fiscal policy is more potent than monetary policy argue that the:

• A)responsiveness of investment to the interest rate is small.
• B)responsiveness of investment to the interest rate is large.
• C)IS curve is nearly horizontal.
• D)LM curve is nearly vertical.

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Definitions:

Likely Response

The anticipated reaction or answer to a given situation, question, or experiment.

Purpose

The reason for which something is done or created or for which something exists.

Writing Process

The series of actions taken by writers to come up with ideas, draft text, revise, and finalize their written work.

Common Ground

Shared beliefs, values, or positions among different parties that serve as a foundation for mutual understanding or agreement.