Author Question: Monetary policy will be a. less effective the higher the interest elasticity of investment, and ... (Read 56 times)

sam.t96 · **on:** Jun 30, 2018

Monetary policy will be

a. less effective the higher the interest elasticity of investment, and thus the steeper the IS schedule.
b. more effective the higher the interest elasticity of investment, and thus the flatter the IS schedule.
c. equally effective regardless of whether or not the interest elasticity of investment is higher or lower, or the IS curve is flatter or steeper.
d. more effective with a vertical IS curve.

Question 2

Output expanded and was distributed toward wartime uses and away from private uses only during World War I (191418), not World War II (194145). The high unemployment of the 1940s made this possible.

Indicate whether the statement is true or false