Multiple Choice
When the marginal propensity to save declines,the
A) multiplier becomes larger and the IS curve becomes flatter.
B) marginal propensity to consume increases and there is no effect on the IS curve.
C) multiplier becomes larger and the IS curve becomes steeper.
D) multiplier declines and the IS curve becomes steeper.
Correct Answer:
Verified
Correct Answer:
Verified
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