Multiple Choice
A reduction in the marginal propensity to save from .4 to .3 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.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: Suppose the consumption equation is represented by
Q16: Suppose there is an increase in autonomous
Q17: Which of the following occurs when disposable
Q18: Based on our understanding of the model
Q19: Suppose the consumption equation is represented by
Q21: Which of the following events will cause
Q22: Based on our understanding of the model
Q23: Discuss what is meant by the paradox
Q24: Explain what the multiplier represents.
Q25: Which of the following types of government