In the IS curve, consumption is represented as a constant fraction of ________, and, therefore, is ________ than current output.
A) potential output; more volatile
B) potential output; smoother
C) short-run fluctuations; smoother
D) short-run fluctuations; more volatile
E) the interest rate differential; smoother
Correct Answer:
Verified
Q1: The I in the IS curve stands
Q2: Which of the following describes the investment
Q4: According to the IS curve, when interest
Q5: In the long run, if the marginal
Q6: Refer to the following table when answering
Q7: In the short run, because financial markets
Q8: In the IS curve, consumption, government expenditure,
Q9: The foundation of the IS curve is
Q10: In the equation Q11: Which of the following describes the consumption
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