If Interest Rates Are __________ to Changes in the Money

question 105

Multiple Choice

If interest rates are __________ to changes in the money supply and planned investment expenditures are __________ to interest rates,then monetary policy will be __________ in changing Gross Domestic Product.

• A)sensitive; sensitive; effective
• B)responsive; insensitive; ineffective
• C)responsive; insensitive; effective
• D)not responsive; sensitive; effective
• E)not responsive; insensitive; effective

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Definitions:

Time-Series Graph

A visual representation of data points in chronological order, used to analyze trends over time.

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion.

Bar Graph

A graph that uses bars of varying heights or lengths to show the comparative sizes of different observations of a variable.

Linear Curve

A linear curve is a straight line graphically showing the relationship between two variables, with a constant slope and no curvature.