Investment Spending Is Insensitive to Changes in the Interest Rate

question 1

Multiple Choice

Investment spending is insensitive to changes in the interest rate and the SRAS curve is upward sloping.According to a monetarist,an increase in the money supply will __________ Real GDP.According to a Keynesian,an increase in the money supply will __________ Real GDP.

• A) raise; not change
• B) not change; raise
• C) lower; lower
• D) raise; lower
• E) none of the above

---

Definitions:

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Strategic Planning Process

A systematic sequence of actions that organizations use to envision their future and develop necessary procedures and operations to achieve that future.

Marketing Program

A comprehensive plan that integrates various marketing efforts such as advertising, sales, and public relations to achieve business objectives.

Planning Stage

The initial phase in a process where objectives are set and strategies are outlined.