Respuesta :
Answer: responsiveness of investment to the interest rate is small.
Explanation:
Here is the complete question:
Those economists who believe that fiscal policy is more potent than monetary policy argue that the:
a. responsiveness of investment to the interest rate is small.
b. responsiveness of investment to the interest rate is large.
c. IS curve is nearly horizontal.
d. LM curve is nearly vertical
Monetary policy are the activities of the central bank of a country that are used to control the supply an availability of money in an economy. Fiscal policy is the use of taxation and spending to control the economy.
Those economists who believe that monetary policy is more potent than fiscal policy argue that the responsiveness of investment to the interest rate is small.
