If investment is not sensitive to changes in the interest rate, then changes in the money supply:
a. will have no effect on interest rates
b. will have no impact on the quantity of money demanded.
c. will have no effect on the aggregate demand of an economy.
d. will have a major impact on the aggregate demand of an economy.
e. will have a major impact on the price level in an economy.
c
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What is required for a positive externality to occur?
A) The full benefits of an action aren't taken into account. B) The intention or plan to directly help other people C) A concern for social welfare D) Courtesy and honesty E) All the above.
A circular flow diagram shows the flows from the goods and resources markets
Indicate whether the statement is true or false
When a U.S. investor buys a bond issued in a foreign country
A) the balance on the financial account decreases. B) the balance on the capital account decreases. C) the balance of trade decreases. D) the balance on the current account decreases.
During 2005, the tax rate on the top income bracket in the U.S. tax system was _____
a. 28 percent b. 31 percent c. 35 percent d. 39 percent