Question
Changes in monetary policy have the greatest effect on
income tax rates.
service fees and expenses.
demand for investments.
government spending.
income tax rates.
service fees and expenses.
demand for investments.
government spending.
Answers
GPT-4o mini
Changes in monetary policy have the greatest effect on **demand for investments**.
Monetary policy, implemented by central banks, primarily influences interest rates and the money supply, which in turn affects borrowing costs and investment decisions made by businesses and consumers. Lower interest rates typically stimulate investment by reducing the cost of borrowing, whereas higher rates can dampen investment demand.
Monetary policy, implemented by central banks, primarily influences interest rates and the money supply, which in turn affects borrowing costs and investment decisions made by businesses and consumers. Lower interest rates typically stimulate investment by reducing the cost of borrowing, whereas higher rates can dampen investment demand.