Monetary Policy Can Have the Largest Impact on Desired Aggregate

Multiple Choice

Monetary policy can have the largest impact on desired aggregate expenditures 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 steep and the money demand function is relatively flat.
D) investment demand curve is relatively flat and the money demand function is relatively steep.
E) None of the above - monetary policy is always equally effective.