Multiple Choice
If the investment demand function is I = c - dr and the quantity of real money demanded is eY - fr, then monetary policy is relatively potent in influencing aggregate demand when d is ______ and f is ______.
A) large; small.
B) small; also small.
C) small; large.
D) large; also large.
Correct Answer:
Verified
Correct Answer:
Verified
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