A decrease in the marginal propensity to save from 0.42 to 0.13 will cause:
A) the ZZ line to become steeper and a given change in autonomous spending (c0) to have no effect on output.
B) the ZZ line to become steeper and a given change in autonomous spending (c0) to have a larger effect on output.
C) the ZZ line to become flatter and a given change in autonomous spending (c0) to have a smaller effect on output.
D) the ZZ line to become flatter and a given change in autonomous spending (c0) to have a larger effect on output.
E) the ZZ line to become steeper and a given change in autonomous spending (c0) to have a smaller effect on output.
Correct Answer:
Verified
Q3: Use the following information below to answer
Q4: Suppose consumer confidence falls causing a decrease
Q5: Which of the following represents the autonomous
Q6: Suppose, as unrealistic as this might be,
Q7: A decrease in taxes will cause:
A) a
Q9: For a closed economy, which of the
Q10: A decrease in the propensity to consume
Q11: A tax hike will cause:
A) a decrease
Q12: Suppose the propensity to consume equals 0.83.
Q13: Which of the following components of GDP
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