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An Increase in the Marginal Propensity to Consume Would Cause

Question 7

Multiple Choice

An increase in the marginal propensity to consume would cause the IS curve to


A) make a parallel shift to the right.
B) make a parallel shift to the left.
C) rotate to become steeper from its vertical intercept.
D) rotate to become flatter from its vertical intercept.
E) rotate to become flatter from its horizontal intercept.

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