Those economists who believe that monetary policy is more powerful than fiscal policy argue that the

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Economists who believe that monetary policy is more powerful than fiscal policy argue that the interest rate elasticity of investment is large, meaning that changes in the interest rate have a significant impact on investment decisions. This is because changes in interest rates can quickly and directly affect borrowing costs for businesses and consumers, which can lead to changes in their spending and investment behavior.

Those Economists Who Believe That Monetary Policy Is More Powerful