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If Interest Rates Are __________ to Changes in the Money

Question 105

Multiple Choice

If interest rates are __________ to changes in the money supply and planned investment expenditures are __________ to interest rates,then monetary policy will be __________ in changing Gross Domestic Product.


A) sensitive; sensitive; effective
B) responsive; insensitive; ineffective
C) responsive; insensitive; effective
D) not responsive; sensitive; effective
E) not responsive; insensitive; effective

Correct Answer:

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