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
D
Economics
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If the current level of GDP exceeds full employment, the level of GDP can be reduced by
A) reducing the money supply. B) lowering interest rates. C) increasing spending. D) reducing taxes.
Economics
The average total cost curves for Plant 1, ATC0, and Plant 2, ATC1, are shown in the figure above. Over what range of output is it efficient to operate Plant 1?
A) 0-20 B) 0-25 C) 20-25 D) greater than 25
Economics