Investment is very sensitive to changes in interest rates

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Reference no: EM131085921

If the quantity of investment is very sensitive to changes in interest rates:

A. the investment demand curve will be relatively flat, and monetary policy will be very ineffective.

B. the investment demand curve will be relatively flat, and monetary policy will be very effective.

C. the investment demand curve will be relatively steep, and monetary policy will be very ineffective.

D. the investment demand curve will be relatively steep, and monetary policy will be very effective.

E. the money demand curve will be flat, and monetary policy will be ineffective.

Reference no: EM131085921

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