Which of the following makes monetary stimulus less effective?

A. Banks make the maximum possible loan whenever they acquire excess reserves.





B. Short-term interest rates and long-term interest rates respond equally to monetary policy actions.





C. Consumers have a large marginal propensity to consume.





D. Investment spending does not respond to lower interest rates.

Which of the following makes monetary stimulus less effective?
the answer is e, the professor just wants to make us lose points on our grades b/c schiller and aplia teach the class, not him