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-Assume Investment Demand Is Independent of the Interest Rate

Question 51

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  -Assume investment demand is independent of the interest rate. Explain why an expansionary monetary policy designed to drive the interest rate to zero may not be enough to stimulate the economy.
-Assume investment demand is independent of the interest rate. Explain why an expansionary monetary policy designed to drive the interest rate to zero may not be enough to stimulate the economy.

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If investment demand is independent of t...

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