Monetary policy is expected to have its greatest impact on
A) $x _ { r r }$
B) $\text { Ig }$
C) C.
D) G.

Name: Monetary policy is expected to have its greatest impact on A) $x _ { r r }$ B) $\text { Ig }$ C) C. D) G.
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Question

Quizplus · Accepted Answer

Monetary policy primarily influences investment (denoted as Ig) because changes in interest rates, which are a direct outcome of monetary policy adjustments, directly affect the cost of borrowing for businesses and consumers. This in turn influences their investment decisions.

Monetary Policy Is Expected to Have Its Greatest Impact on xrrx _ { r r }xrr​

Monetary Policy Is Expected to Have Its Greatest Impact on $x _ { r r }$