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Monetary Policy Will Be Effective in Changing the Gross Domestic

Question 65

Multiple Choice

Monetary policy will be effective in changing the gross domestic product of a nation only if:


A) planned investment expenditures are autonomous.
B) planned investment expenditures are sensitive to interest rates.
C) interest rates are unresponsive to changes in money supply.
D) interest rates are sensitive to changes in the price level.

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