Solved

The Slope of the IS Curve Will Be Steeper the __________

Question 6

Multiple Choice

The slope of the IS curve will be steeper the __________ is the sensitivity of investment to a unit change in the interest rate and the __________ is marginal propensity to save.


A) greater; larger
B) greater; smaller
C) less; larger
D) less; smaller

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: Along an LM curve at higher interest

Q2: A rising GDP causes _ the money

Q3: Which of the following is an equilibrium

Q4: Starting from equilibrium in the ISLM framework,

Q5: In the ISLM framework, monetary policy has

Q7: Any decrease in autonomous spending will<br>A) shift

Q8: A falling GDP causes _ the money

Q9: The IS curve shows a series of

Q10: With a rise in government expenditure we<br>A)

Q11: The steeper the LM curve<br>A) the more