An increase in the fiscal policy multiplier can be caused by
A) an increase in the interest sensitivity of investment
B) an increase in the interest sensitivity of money demand
C) a decrease in the interest sensitivity of money demand
D) an increase in the income tax rate
E) a decrease in autonomous saving
Correct Answer:
Verified
Q36: In an IS-LM model, a decrease in
Q37: People will hold more money if they
Q38: The LM-curve
A)shows the relationship between the interest
Q39: If the central bank increases money supply,
Q40: In an IS-LM model, if the government
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
Q46: If the marginal propensity to save suddenly
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