Economics · Keynesian IS-LM Model
In the Keynesian IS-LM model, the fiscal policy multiplier is larger when:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Investment is highly interest elastic
- 2The demand for money is unit elastic
- 3The demand for money is more interest elastic✓
- 4The demand for money is less interest elastic
Correct answer
The demand for money is more interest elastic
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