The impact of monetary policy on investment spending may be weakened ________.

A. because of the Treasury’s desire for high interest rates
B. if the investment demand curve shifts to the right during inflation and to the left during recession
C. if the rate at which dollars are spent changes in the same direction as the money supply
D. if the investment demand curve is very flat

ANSWER

B. if the investment demand curve shifts to the right during inflation and to the left during recession