The smaller the marginal propensity to consume, the
A) flatter the IS curve will be.
B) steeper the IS curve will be.
C) flatter the LM curve will be.
D) steeper the LM curve will be.
B
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In the short run, a tax on economic profits can be shifted.
A. True B. False C. Uncertain
Americans spend more on goods produced in China than Chinese citizens spend on goods produced in the United States
a. True b. False
Which of the following statements is false?
A) Keynes believed that the level of investment depends on more than just the interest rate. B) Saving is the difference between disposable income and consumption. C) Keynes believed that saving is more responsive to changes in income than to changes in the interest rate. D) According to Keynes, wage rates may fall too quickly when the economy is in a recessionary gap.
We define autonomous expenditure to be expenditure that:
A. is unaffected by the current level of income in the economy. B. that changes under the guidance of the government. C. depends on how much income changes in the economy. D. people make that pertains to the auto industry.