Solved

An Increase in the Propensity to Consume from 0

Question 47

Multiple Choice

An increase in the propensity to consume from 0.42 to 0.78 will cause:


A) the ZZ line to become flatter 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 no effect on output.
C) the ZZ line to become steeper and a given change in autonomous consumption (c0) to have a larger effect on output.
D) the ZZ line to become steeper and a given change in autonomous consumption (c0) to have a smaller effect on output.
E) the ZZ line to become flatter and a given change in autonomous consumption (c0) to have a larger effect on output.

Correct Answer:

verifed

Verified

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

Related Questions