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Please show your answer clearly, thanks. If investment spending is very sensitive to the interest rate, then: 0 the LM curve should be relatively flat.

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Please show your answer clearly, thanks.

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If investment spending is very sensitive to the interest rate, then: 0 the LM curve should be relatively flat. 0 the LM curve should be relatively steep. O neither the IS nor the LM curve will be affected. 0 the IS curve should be relatively steep. O the IS curve should be relatively flat. When the Canadian dollar appreciates, we know that: O the dollar is less expensive to foreigners. 0 Canadian goods are less expensive to foreigners. 0 foreign currency is less expensive to Canadians. 0 foreign goods are less expensive to Canadians. 0 Canadian goods are as expensive as foreign goods. Efficiency wage theory suggests that: 0 firms will be more resistant to wage increases as the labour market tightens. 0 workers will be paid more than their reservation wage. O productivity might drop if the wage rate is too high. Q unskilled workers will have a lower turnover rate than skilled workers. 0 the government can only set tax rates so high before people will prefer not to work

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