Solved

When the Multiplier Is Included in the IS Curve

Question 80

Multiple Choice

When the multiplier is included in the IS curve:


A) a demand shock has a larger impact on short-run fluctuations than with the standard IS curve
B) a change in the real interest rate has a smaller impact on short-run fluctuations than with the standard IS curve
C) a demand shock has a smaller impact on short-run fluctuations than with the standard IS curve
D) a change in taxes has no impact on short-run output
E) a change in the marginal product of capital has a smaller effect on short-run fluctuations in output than with the standard IS curve

Correct Answer:

verifed

Verified

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

Related Questions

Q41: Refer to the following figure when answering

Q55: In the IS curve, consumption is represented

Q70: Some economists, like Robert Barro and John

Q75: The life-cycle hypothesis suggests that people base

Q76: In the short run, because financial markets

Q76: Refer to the following figure when answering

Q79: The IS curve describes short-run movements

Q82: In the long run, if the

Q114: What should the long-run effect of the

Q124: In the late 1990s, the United States