Question

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.

Answer 1

Answer:C

Step-by-step explanation:

Answer 2

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.