Monetary policy will be effective in changing the gross domestic product of a nation only if:

A) planned investment expenditures are autonomous.
B) planned investment expenditures are sensitive to interest rates.
C) interest rates are unresponsive to changes in money supply.
D) interest rates are sensitive to changes in the price level.

Gross Domestic Product

A measure of the economic productivity of a country, quantifying the total value of all goods and services produced over a specific time period.

Planned Investment

Future directed expenditure by firms on physical assets like machinery and buildings, anticipated to enhance productivity.

Interest Rates

The cost of borrowing money or the return on savings, typically expressed as a percentage of the principal sum annually.