In the equation I,/Y,=ā, -b (R, -F). if b is close to infinity, O a. investment is somewhat sensitive to changes in the marginal product of capital Ob. investment is not very sensitive to changes in the real interest rate Oc. investment is sensitive to changes in the tax rate Od.investment is extremely sensitive to changes in the real interest rate Oe. the output gap is zero

In the equation I,/Y,=ā, -b (R, -F). if b is close to infinity, O a. investment is somewhat sensitive to changes in the marginal product of capital Ob. investment is not very sensitive to changes in the real interest rate Oc. investment is sensitive to changes in the tax rate Od.investment is extremely sensitive to changes in the real interest rate Oe. the output gap is zero

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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