Consider the monetary transmission mechanism. Other things being equal, the steeper is the investment demand function, the
A) more responsive is desired investment to a change in the interest rate.
B) more responsive is the demand for money to a change in the interest rate.
C) less responsive is the demand for money to a change in the interest rate.
D) less responsive is desired investment to a change in the interest rate.
E) less responsive is the interest rate to a change in the money supply.
Correct Answer:
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