An increase in the propensity to consume from 0.42 to 0.78 will cause:
A) the ZZ line to become flatter and a given change in autonomous consumption (c0) to have a smaller effect on output.
B) the ZZ line to become steeper and a given change in autonomous consumption (c0) to have no effect on output.
C) the ZZ line to become steeper and a given change in autonomous consumption (c0) to have a larger effect on output.
D) the ZZ line to become steeper and a given change in autonomous consumption (c0) to have a smaller effect on output.
E) the ZZ line to become flatter and a given change in autonomous consumption (c0) to have a larger effect on output.
Correct Answer:
Verified
Q38: In the goods market model, which of
Q39: Which of the following represents total saving
Q40: The propensity to consume represents:
A) the change
Q41: Discuss and explain what effect an increase
Q41: Explain what the multiplier represents.
Q44: Discuss what is meant by the paradox
Q47: Which of the following events will cause
Q50: Suppose that,at a given level of disposable
Q55: Discuss the two components of fixed investment.
Q59: Explain the difference between endogenous and exogenous
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