The IS curve will be flatter the more responsive consumption and investment are to changes in interest rates.
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Q14: A deflationary gap occurs because
A) Governments set
Q15: Which of the following statements about the
Q16: If the economy was in equilibrium where
Q17: Keynes believed that a key element of
Q18: The government increases spending by €10 billion
Q20: Planned spending includes the intended or desired
Q21: In the money market, an increase in
Q22: General equilibrium in an economy occurs:
A) at
Q23: The investment and saving line in the
Q24: The liquidity and money (LM) curve has
A)
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