Based on our understanding of the model presented in Chapter 3,we know that an increase in c1 (where C = c0 + c1YD) 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
Q26: A tax cut will cause
A)a reduction in
Q27: Based on our understanding of the paradox
Q31: An increase in the desire to save
Q32: An increase in the marginal propensity to
Q32: When a closed economy is in equilibrium,we
Q35: An increase in the marginal propensity to
Q35: Which of the following events will cause
Q38: Which of the following equals demand in
Q41: Suppose the United States economy is represented
Q51: Suppose business confidence decreases causing a reduction
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