A lower marginal propensity to consume is most likely to result in a(n):
a. flatter aggregate expenditure line
b. steeper aggregate expenditure line.
c. upward shift of the aggregate expenditure line.
d. downward shift of the aggregate expenditure line.
a
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Which of the following statements is true?
a. Interest rates charged to well-known corporations are higher than rates charged to individuals because corporations can afford it. b. If people expect higher rates of inflation, the market interest rate will decrease because fewer people will borrow. c. Interest rates in unstable countries are lower than rates in stable countries. d. The risk cost of doing business in a high-crime area is greater and the cost of borrowing is, therefore, greater there. e. The lower the tax rate, the greater the cost of borrowing.
An increase in autonomous consumption has the same equilibrium effect as a(n)
a. decrease in investment. b. increase in investment. c. decrease in net exports. d. increase in taxes.