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Monetary policy is most effective when investment spending is

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Monetary policy is most effective when investment spending is :

(1) Interest elastic and demand for money is also interest elastic

(2) Interest inelastic and demand for money is also interest inelastic

(3) Interest inelastic and demand for money is interest elastic

(4) Interest elastic and the demand for money is interest inelastic
Answer - (4) Interest elastic and the demand for money is interest inelastic 

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