If people were suddenly to begin to save a larger proportion of their after-tax income, we should expect to see
A) the IS curve getting steeper.
B) the LM curve getting steeper.
C) the IS curve getting flatter.
D) the LM curve getting flatter.
E) none of the above.
Correct Answer:
Verified
Q17: In theory, the relationship between interest rates
Q18: The investment function reflects a negative relationship
Q19: In the long run, an increase in
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Q21: If the LM curve were vertical, then
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A) monetary policy by a
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