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Investment is perfectly insensitive with respect to the interest rate if... A very small change in interest generates a large change in investment. A change
Investment is perfectly insensitive with respect to the interest rate if...
- A very small change in interest generates a large change in investment.
- A change in interest by 1% leads to a change in investment of less than 1%.
- A change in interest by 1% leads to a change in investment by more than 1%.
- A very large change in interest does not change investment.
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