The effect on the IS curve of a reduction in taxes will be less the
A) flatter is the LM curve.
B) steeper is the LM curve.
C) greater the extent of "crowding out."
D) greater is the marginal propensity to save.
Correct Answer:
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Q99: When (if at all)can the crowding-out effect
Q100: Figure 4-6 Q101: The fiscal-policy multiplier will be greater Q102: During Global Financial Crises,housing starts in the Q103: A steep IS curve implies that Q105: A flat IS curve implies that Q106: If the IS curve is negatively sloped Q107: The simple fiscal policy multiplier occurs in Q108: Given the level of real GDP,the equilibrium Q109: An increase in the marginal propensity to
A)the greater
A)an increase
A)an increase
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