Suppose that the IS schedule is vertical because the interest elasticity of investment demand is zero; investment is completely insensitive to the interest rate. Is it still true that for the case of...


Suppose that the IS schedule is vertical because the interest elasticity of investment demand is zero; investment is completely insensitive to the interest rate. Is it still true that for the case of IS shocks a money-supply target is preferable to an interest-rate target? Show why or why not using the IS – LM graphs.



May 18, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here