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Answer to Question #80794 in Macroeconomics for AYANDA
Question #80794
An expansionary monetary policy will be less effective if...
1) The aggregate supply curve is very steep
2) The multiplier is very large
3) The investment demand is responsive to the interest rate
4) The aggregate demand curve is very steep
1) The aggregate supply curve is very steep
2) The multiplier is very large
3) The investment demand is responsive to the interest rate
4) The aggregate demand curve is very steep
Expert's answer
3) The investment demand is responsive to the interest rate
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Inward industrialisation involves [1] the increase in domestic demand with the view to enable an economy to export goods [2] the use of import tariffs to encourage the local production of goods [3] the increase in domestic demand with the view to provide the basic consumer goods to the underprivileged members of the society. [4] the substitution of local industries with foreign industries in order to reduce the costs of production in the economy.
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