If disposable income falls, consumption expenditure falls ________
A) by an amount that depends on the real interest rate
B) so that planned expenditure remains constant
C) by an amount smaller than the decrease in disposable income
D) all of the above
E) none of the above
C
Economics
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What appears to have been one of the major causes of the Asian financial crisis?
What will be an ideal response?
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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
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