Other Things Equal, a Fall in the Marginal Propensity to Save

Multiple Choice

Other things equal, a fall in the marginal propensity to save will make the IS curve __________, and a rise in the responsiveness of short-term international financial capital To changes in the interest rate will make the BP curve __________.

A) flatter of more elastic; flatter or more elastic
B) flatter or more elastic; steeper or less elastic
C) steeper or less elastic; flatter or more elastic
D) steeper or less elastic; steeper or less elastic