Solved

In the IS Curve,consumption Is Represented as a Constant Fraction

Question 11

Multiple Choice

In the IS curve,consumption is represented as a constant fraction of __________,and,therefore,is __________ than current output.


A) potential output;more volatile
B) potential output;smoother
C) short-run fluctuations;smoother
D) short-run fluctuations;more volatile
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q6: The IS curve describes short-run movements in

Q7: The foundation of the IS curve is

Q10: The implication of Ricardian equivalence is that,if

Q13: In the IS curve <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4305/.jpg" alt="In

Q14: Derive Hicks' IS relationship beginning with the

Q16: What should the long-run effect of the

Q17: When the real interest rate rises, there

Q56: In the IS curve, consumption, government expenditure,

Q67: Over the past few years, the Chinese

Q72: You hear that the Federal Reserve is