The greater 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.
A
Economics
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In Figure 13-3 above, given the unstable demand for money and a stable commodity demand, a stable output level at C would best be promoted by
A) targeting interest rates by the Fed. B) decreasing taxes. C) increasing expenditures by the government. D) decreasing expenditures by the government.
Economics
Suppose a society's PPF for food (F) and clothing (C) can be written as 25 = F2 + C2. If all consumers have the same endowment and the same utility function Ui = Fi ? Ci, what is the efficient product mix of food and clothing?
What will be an ideal response?
Economics