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) the interest rate differential; smoother
Correct Answer:
Verified
Correct Answer:
Verified
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