The Less Interest-Sensitive Is Money Demand,the

question 55

Multiple Choice

The less interest-sensitive is money demand,the

• A)more effective is fiscal policy relative to monetary policy.
• B)more effective is monetary policy relative to fiscal policy.
• C)steeper is the IS curve.
• D)flatter is the LM curve.

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Definitions:

Independence

The state of being self-sufficient and free from outside control, managing one's own affairs without aid or influence.

Creativity

Refers to the ability to generate new and valuable ideas or solutions.

Uncertainty

A state of being unsure or having doubts about something, often due to a lack of information or knowledge.

Self-actualized

A term used in psychology to describe a person who has reached their fullest potential, as per Abraham Maslow's hierarchy of needs.