Question

Question 5:
47) The IS schedule will be
relatively flat (steep) if the
interest rate elasticity of
investment is relatively high
(low).
a) Yes
b)
c) neither a
No
nor b​

Answer 1

Answer:produced, Y, equals the quantity of goods demanded, C + I + G. Thus, the IS curve is ... b) If money demand does not depend on the interest rate, the LM curve is vertical. ... will be lower, investment will be higher, and interest rates will be lower. 4) Explain briefly (2 or 3 sentences) why a monetary contraction for a small open.

Explanation:

Answer 2

Answer:

A

Explanation:

In this case Investment demand is very sensitive.

If IS schedule will be relatively flat, investment will increase ( because public response will fall ).But and this case income and savings will increase.