An increase in the marginal propensity to save from .3 to .4 will cause
A) the ZZ line to become steeper 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 a larger effect on output.
C) the ZZ line to become flatter and a given change in autonomous consumption (c₀) ) to have a smaller effect on output.
D) the ZZ line to become flatter and a given change in autonomous consumption (c₀) to have a larger effect on output.
Correct Answer:
Verified
Q17: An economy is in equilibrium when which
Q18: Equilibrium in the goods market requires that
A)production
Q19: Which of the following is true for
Q20: Which of the following types of government
Q21: Autonomous spending in a closed economy equals
Q23: Suppose an open economy is in equilibrium.Given
Q24: For a closed economy,which of the following
Q25: An increase in taxes will cause
A)a reduction
Q26: A tax cut will cause
A)a reduction in
Q27: Based on our understanding of the paradox
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