Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The table sets out the elasticity of demand for money and the elasticity of demand for investment in response to a change in the interest rate for four countries. Which country is nearest to a Keynesian model of the economy?

  • Aelastic (money) / elastic (investment)
  • Belastic (money) / relatively inelastic (investment)
  • Cinelastic (money) / elastic (investment)
  • Dinelastic (money) / relatively inelastic (investment)

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