Tanuj rana Asked a Question
September 2, 2020 8:49 ampts 5 pts
Monetary policy is most effective whe investment spending is: A. Interest elastic and demand for money i also interest elastic B. Interest inelastic and demand for mon is also interest inelastic C. Interest inelastic and demand for mc iey is interest elastic D. Interest elastic and the demand for money is interest inelasticc
  • 1 Answer(s)
  • Shares
  • Nidhi taparia thankyou
    The answer should be (1). Monetary Policy basically means changing the supply of money to bring about a change in overall economy which includes investment. So if investment spend...
    Show more
    Likes(0) Reply(1)
    Tanuj rana
    i think D is right
  • Bisnu kumar sahoo
    Likes(0) Reply(0)
  • Nidhi taparia
    Interest elastic implies when interest will change, investment and demand for money will also change. Interest inelastic means these will not change much even when interest changes...
    Show more
    Likes(0) Reply(0)
  • Nidhi taparia
    @Tanuj Let's discuss it. Tell me why you think D is right, I've already given most of my explanation.
    Likes(0) Reply(0)
  • Tanuj rana
    • cropped8401762400924602847.jpg
    Likes(0) Reply(0)