Multiple Choice
In the equation 
,if b± is close to zero,
A) investment is not very sensitive to real interest rate changes.
B) investment is not very sensitive to changes in the marginal product of capital.
C) investment is very sensitive to real interest rate changes.
D) investment is sensitive to tax rate changes.
E) a and b are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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