The slope of the IS curve will be flatter the __________ is the sensitivity of investment to a unit change in the interest rate and the __________ is marginal propensity to save
A) greater; larger
B) greater; smaller
C) less; larger
D) less; smaller
B
You might also like to view...
The table below shows data for Brazil
2006 2007 Real GDP growth rate 3.8 5.4 Inflation rate 4.2 3.7 Assuming the rate of velocity change is constant A) the growth rate of money increased between 2006 and 2007. B) the money growth rate was -0.4 percent in 2006. C) the growth rate of nominal GDP was 1.7 percent in 2006. D) the demand for money curve shifted leftward in 2006.
One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income
a. True b. False Indicate whether the statement is true or false
Financial intermediaries are:
A. government officials who bring together buyers and sellers in a market. B. those who negotiate terms of settlement between borrower and lender when one is in default. C. institutions that channel funds from people who have them to people who want them. D. those who negotiate terms of settlement between buyer and seller when one is in default.
The economy experiences a decrease in the price level and an increase in real domestic output. Which is a likely explanation?
A. National income abroad has increased. B. Consumer incomes and the quantity of labor have decreased. C. Raw material prices and wage rates have decreased. D. The prices of imported resources have increased.