Changes in monetary policy have the greatest effect on A. income tax rates. B. service fees and expenses. C. demand for investments. D. government spending.

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asked Mar 18, 2018 180k views

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Dbc · Answer 1 · 2018-03-23T16:49:33+0000

The correct answer is letter C.

Monetary policies change the interest-rates which affets the investments. When the inflation is too high and the expectations around it change, the interest-rates are affected and it directly changes the demand for investments.

Changes in monetary policy have the greatest effect on A. income tax rates. B. service fees and expenses. C. demand for investments. D. government spending.

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