The slope of the IS curve will be steeper the __________ is the sensitivity of investment to a unit change in the interest rate and the __________ is marginal propensity to save.
A) greater; larger
B) greater; smaller
C) less; larger
D) less; smaller
Correct Answer:
Verified
Q42: Suppose the marginal propensity to consume is
Q43: Any decrease in autonomous spending will
A) shift
Q44: Which of the following will change the
Q45: Along an IS curve as income levels
Q46: The IS curve becomes steeper if there
Q48: The slope of the IS curve will
Q49: Suppose the marginal propensity to consume is
Q50: The greater the marginal propensity to consume,
Q51: Which of the following is an equilibrium
Q52: An increase in government spending will cause
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents