The degree to which _____ declines during a recession or increases during an expansion depends on the amount by which the AD and/or AS curves shift

The IS curve becomes steeper when there is

a. a higher marginal propensity to save. b. a smaller parameter measuring the interest sensitivity of investment. c. a lower marginal propensity to save. d. Both a and b e. Both b and c

Refer to the data. Suppose that a new government regulation is going to shut down OZ's mining operation one year from now. Assuming that all gold extracted is sold in the same year (cannot be stockpiled for later sale), how will the regulation affect the user cost?

The table below shows the quantity of gold bars (Q b ) in thousands, the extraction cost for each thousand bars (in millions of dollars), and the user cost of each thousand bars (in millions of dollars) facing the OZ Mining Company this year.

A.  It will have no effect on the user cost.
B.  The effect on the user cost cannot be determined.
C.  The user cost will rise because the rate of extraction will rise.
D.  The user cost will become zero because they will not be able to extract in the future.