The higher the interest sensitivity of investment, the
a. less effective is monetary policy and the more effective is fiscal policy.
d. more effective are both monetary and fiscal policies.
c. less effective are both monetary and fiscal policies.
d. less effective is fiscal policy and the more effective is monetary policy.
Question 2
The money-stock target is preferable when uncertainty is the result of unpredictable shifts in which of the following?
a. expectations in future profitability
b. Residential construction investment
c. the money multiplier
d. Both a and b
e. All of the above