If the marginal propensity to save suddenly increases, then
A) the size of the fiscal policy multiplier will become larger
B) the size of the monetary policy multiplier will increase
C) the IS-curve will become steeper
D) the IS-curve will shift to the right and income will increase
E) income will increase but the interest rate will decrease
Correct Answer:
Verified
Q40: In an IS-LM model, if the government
Q41: An increase in the fiscal policy multiplier
Q42: If investment becomes more sensitive to changes
Q43: Which of the following is the equation
Q44: An increase in the interest sensitivity of
Q45: If money demand becomes more sensitive to
Q47: The movement along the AD-curve from left
Q48: The slope of the AD-curve will become
Q49: The slope of the AD-curve will become
Q50: A decrease in the income tax rate
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