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Suppose Investment Spending Is Not Very Sensitive to the Interest

Question 5

Multiple Choice

Suppose investment spending is not very sensitive to the interest rate.Given this information,we know that


A) the IS curve should be relatively flat.
B) the IS curve should be relatively steep.
C) the LM curve should be relatively flat.
D) the LM curve should be relatively steep.
E) neither the IS nor the LM curve will be affected.

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