Those Economists Who Believe That Monetary Policy Is More Potent

question 1

Multiple Choice

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

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

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Definitions:

Sweating

A physiological process of secreting fluid from sweat glands of the skin, often induced by heat or stress as part of the body's cooling mechanism.

Physical Symptoms

Observable or felt changes in the body that often indicate disease, discomfort, or the effects of stress.

Agreeableness

A personality trait characterized by compassion, cooperativeness, and a desire for social harmony.

Antagonism

Extreme low agreeableness.