Solved

If Investment Is Not Very Sensitive to Interest Rate Changes

Question 1

Multiple Choice

If investment is not very sensitive to interest rate changes,


A) fiscal policy will be largely ineffective in changing output
B) monetary policy will be very effective in changing output
C) the economy is in the classical case
D) monetary policy cannot be used to lower interest rates
E) the size of the crowding out effect following expansionary fiscal policy will be small

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents