Multiple Choice
A decrease in the marginal propensity to save from 0.42 to 0.13 will cause:
A) the ZZ line to become steeper and a given change in autonomous spending (c0) to have no effect on output.
B) the ZZ line to become steeper and a given change in autonomous spending (c0) to have a larger effect on output.
C) the ZZ line to become flatter and a given change in autonomous spending (c0) to have a smaller effect on output.
D) the ZZ line to become flatter and a given change in autonomous spending (c0) to have a larger effect on output.
E) the ZZ line to become steeper and a given change in autonomous spending (c0) to have a smaller effect on output.
Correct Answer:
Verified
Correct Answer:
Verified
Q31: Which of the following equals demand in
Q33: A tax hike will cause:<br>A) a decrease
Q34: The goods market is in equilibrium when
Q35: Suppose the propensity to consume equals 0.83.
Q37: Based on our understanding of consumption and
Q38: When C = c0 + c 1YD,
Q39: Inventory investment is the difference between which
Q40: Use the following information below to answer
Q41: Suppose business confidence rises causing an increase
Q53: Suppose that,at a given level of disposable