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Homework answers / question archive / Given the investment function, I = f – hr, as the interest sensitivity of investment falls, that is as h falls, the IS curve gets A

Given the investment function, I = f – hr, as the interest sensitivity of investment falls, that is as h falls, the IS curve gets A

Economics

Given the investment function, I = f – hr, as the interest sensitivity of investment falls, that is as h falls, the IS curve gets
A. flatter but shifts more when government spending increases
B. steeper but shifts more when government spending increases
C. flatter but shifts less when government spending increases
D. steeper but shifts less when government spending increases
E. none of the other answers is correct

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Option C

flatter but shifs less when government spending increases

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