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Answer to Question #229322 in Economics for tooth.breakker

Question #229322

Explain if the interest elasticity of investment demand is zero. What will be the resulting slop of IS schedule?


1
Expert's answer
2021-08-24T14:07:29-0400

If the coefficient of elasticity is zero, then the demand is absolutely inelastic, that is, no change in price entails a change in the amount of required production.


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