Under which circumstance does a change in government spending have the largest effect on the real interest rate?
A) A monetary policy targeted at a constant monetary base with checking accounts paying no interest
B) A monetary policy targeted at a constant interest rate with checking accounts paying no interest
C) A monetary policy targeted at a constant money supply with checking accounts paying competitive interest rates
D) A monetary policy targeted at a constant monetary base with checking accounts paying competitive interest rates
E) Either a or d depending on macroeconomic conditions

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The Answer of Under which circumstance does a change in government spending have the largest effect on the real interest rate?
A) A monetary policy targeted at a constant monetary base with checking accounts paying no interest
B) A monetary policy targeted at a constant interest rate with checking accounts paying no interest
C) A monetary policy targeted at a constant money supply with checking accounts paying competitive interest rates
D) A monetary policy targeted at a constant monetary base with checking accounts paying competitive interest rates
E) Either a or d depending on macroeconomic conditions

Under Which Circumstance Does a Change in Government Spending Have