A flat IS curve implies that
A) an increase in money supply will change output by a relatively small amount.
B) a decrease in taxes will change output by a relatively large amount.
C) changes in money supply will have large multiplier effects on output.
D) A and B.
Correct Answer:
Verified
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 Q104: The effect on the IS curve of 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 Q110: Figure 4-8
A)the greater
A)an increase
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