The effectiveness of monetary policy in bringing about changes in real GDP is enhanced when the
A) investment demand curve and money demand function are both relatively flat.
B) investment demand curve and money demand function are both relatively steep.
C) investment demand curve is relatively flat and the money demand function is relatively steep.
D) investment demand curve is relatively steep and the money demand function is relatively flat.
E) none of the above -- monetary policy is always equally effective.
Correct Answer:
Verified
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