If investment becomes more interest-sensitive,
A) monetary policy will have a smaller impact on the equilibrium interest rate.
B) monetary policy will have a greater impact on equilibrium income.
C) fiscal policy will have a smaller impact on equilibrium income.
D) fiscal policy will have a larger impact on the equilibrium interest rate.
B
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The Bureau of Economic Analysis divides it's statistics on GDP into four major categories. List the categories of expenditures and define each
What will be an ideal response?
If it turned out that labor supply was relatively elastic then who would bear the greater burden of the payroll tax and why?
What will be an ideal response?
In building an economic model, variables that will be explained by the model are referred to as ________ variables
A) exogenous B) endogenous C) fluctuating D) demonstrative
The long-run aggregate supply curve is vertical:
A. because the rate of inflation is steady in the long run. B. because resource prices eventually rise and fall with product prices. C. because product prices tend to increase at a faster rate than resource prices. D. only when the money supply increases at the same rate as real GDP.