The higher the interest sensitivity of investment the   a. less effective are both monetary and fiscal policies. b. less effective is monetary policy and the more effective is fiscal policy. c. less effective is fiscal policy and the more effective is monetary policy. d. more effective are both monetary and fiscal policies.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
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Problem 1CQ
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The higher the interest sensitivity of investment the
 
a.
less effective are both monetary and fiscal policies.
b.
less effective is monetary policy and the more effective is fiscal policy.
c.
less effective is fiscal policy and the more effective is monetary policy.
d.
more effective are both monetary and fiscal policies.
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