Dan, a writer for a business magazine, interviewed managers at 100 large corporations. All of the managers indicated that the primary determinant of planned investment is expected sales and not the interest rate. From this information, Dan concluded that
A) fiscal policy would be very effective, but monetary policy would not be very effective.
B) neither expansionary nor contractionary fiscal policy would be very effective.
C) both expansionary and contractionary monetary policy would be very effective.
D) contractionary fiscal policy would not be very effective, but contractionary monetary policy would be very effective.
Ans: A) fiscal policy would be very effective, but monetary policy would not be very effective.
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