Multiple Choice
Economist A believes that the elasticity of investment is 0.76 while economist B believes that the elasticity of investment is 1.76.Which economist,A or B,is more likely to believe that a change in the interest rate will change the current economic environment?
A) Economist A,since she believes that investment is more sensitive to changes in interest rates than does economist B.
B) Economist B,since she believes that investment is more sensitive to changes in interest rates than does economist A.
C) Economist A,since she believes that investment is less sensitive to changes in interest rates than does economist B.
D) Economist B,since she believes that investment is less sensitive to changes in interest rates than does economist A.
Correct Answer:
Verified
Correct Answer:
Verified
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