According to the IS equation, a change in which of the following will cause a change in output?
A) real interest rate
B) autonomous investment
C) marginal propensity to consume
D) all of the above
E) none of the above
D
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If a nation imposes a tariff on imports, the portion of the tax paid by citizens depends upon
a. elasticity of demand. b. elasticity of supply. c. how important the good is. d. income elasticity. e. cross elasticity of demand with domestic products.
Which of the following examples would most likely happen with monopolistic competition?
a. When an ice cream shop introduces coffee ice cream, a nearby ice cream shop remains unaware of this. b. When a bowling alley offers $1,000 for a perfect game, another bowling alley offers $2,000 for a perfect game. c. When a coffee shop introduces pumpkin lattes, another coffee shop introduces cranberry lattes. d. When a restaurant offers free coffee refills, a nearby restaurant does the same.