Economics · Macroeconomics
In the Keynesian IS-LM model, the monetary policy multiplier is larger if:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1the demand for money is more interest-inelastic✓
- 2the demand for investment goods is more interest-elastic
- 3the demand for investment goods is less interest-elastic
- 4the demand for investment goods is perfectly inelastic
Correct answer
the demand for money is more interest-inelastic
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