Consider an economy with a goods and services market and a money market as presented in class. If firms hardly increase the number of investment projects undertaken when interest rates fall and hardly reduce the number of investment projects undertaken when interest rates increase, then
A) expansionary fiscal policy will be strong, but contractionary fiscal policy will be weak.
B) it is vital that the Fed accommodate any fiscal policy.
C) there is very little fiscal policy crowding out.
D) monetary policy will have large impacts on the economy.