Based on Our Understanding of the Model Presented in Chapter

Multiple Choice

Based on our understanding of the model presented in Chapter 3,we know that a reduction 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.