In the context of IS-LM framework, which of the following statement is false?
1
Is curve is steeker, the lower the value of the Keynesian, the lower the value of the Keynesian multiplier and lower the interest sensitiveness of investment demand
2
Crowding out is effective when money demand is perfectly interest inelastic and investment is perfectly interest elastic
3
The fiscal policy is least effective and the monetary policy is most effective, the higher the interest sensitiveness of money demand and the lower the interest sensitiveness of investment demand
4
The rigoi effect restores the effectiveness of monetary policy even under the liquidity trap