A Reduction in the Marginal Propensity to Import Will Cause

Multiple Choice

A reduction in the marginal propensity to import will cause

A) the ZZ line to become flatter and a given change in government spending (G) to have a larger effect on domestic output.
B) the ZZ line to become flatter and a given change in government spending (G) to have a smaller effect on domestic output.
C) the ZZ line to become steeper and a given change in government spending (G) to have a larger effect on domestic output.
D) the ZZ line to become steeper and a given change in government spending (G) to have a smaller effect on domestic output.