| Kenyesian Model The more sensitive is money demand to the interest rate, the larger is the immediate effect on government's expenditure on investment, and the flatter is the aggregate demand curve for the following model
Y=c(Y) +I(r) + G
M/P = L(Y,r)
P*/P = [(Y-Y*)/Y*]
Sate weather the given statment is ture and explain your answer. |