An increase in the marginal propensity to save from .3 to .4 will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output.
B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output.
C) the ZZ line to become flatter and a given change in autonomous consumption (c0 )) to have a smaller effect on output.
D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.
B
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If a demand curve shifts to the left, then
A) demand has increased. B) quantity demanded has increased. C) demand has decreased. D) quantity demanded has decreased.
Assume that Sweden will specialize in either boats or cars. What is their opportunity cost of producing three cars?
