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.
D
You might also like to view...
The period for which the Consumer Price Index is defined to equal 100 is called the
A) base period. B) starting point. C) beginning period. D) zero period. E) reference base period.
Bicycle helmet laws are designed to reduce the severity of injuries resulting from bicycle involvement in traffic accidents. In this sense, the helmet laws are reducing ________ of risky behavior
A) positive externalities B) negative externalities C) transactions costs D) the efficiency
If black markets help people meet their needs, they will tend to ________ created by the restrictive government policies
A) increase the absolute advantage B) reduce the deadweight losses C) reduce the cooperative surpluses D) increase the tax revenues
When foreign investors in Thailand began to realize that Thailand could not maintain its peg to the dollar indefinitely, they began to sell off their investments in Thailand and exchange the baht they received for dollars
This reduction in investment by foreigners is termed A) stabilizing capitalization. B) capital inflow. C) foreign direct investment. D) capital flight.