Suppose the Chinese government reduced substantially its budget deficit in order to slow the high rate of

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Suppose the Chinese government reduced substantially its budget deficit in order to slow the high rate of domestic growth and rising inflation rate. Would the government's policy be more effective if China's investment demand (i.e., demand for gross private domestic investment) was elastic or inelastic with respect to the real risk-free interest rate? In your answer, be sure to define what an "elastic" and "inelastic" investment demand means.
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