Suppose we had a case in which the interest elasticity of both money demand and investment were

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Suppose we had a case in which the interest elasticity of both money demand and investment were quite low. Would either monetary or fiscal policy be very effective? How would you interpret such a situation?

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Macroeconomics Theories and Policies

ISBN: 978-0132831529

10th edition

Authors: Richard T. Froyen

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Question Posted: May 24, 2016 06:44 AM

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Suppose we had a case in which the interest elasticity of both money demand and investment were

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In such a case neither monetary policy which would shift the LM schedule nor fiscal policy ...View the full answer

Macroeconomics Theories and Policies

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