A flatter aggregate consumption function, if plotted on a graph with output on the horizontal axis and aggregate consumption on the vertical axis, would indicate which of the following: Select one: a. A smaller marginal propensity to consume and a larger multiplier. b. A larger marginal propensity to consume and a larger multiplier. c. A smaller marginal propensity to consume and a smaller multiplier. d. A smaller marginal propensity to save (MPS = 1 - MPC) and a smaller multiplier.
A flatter aggregate consumption function, if plotted on a graph with output on the horizontal axis and aggregate consumption on the vertical axis, would indicate which of the following: Select one: a. A smaller marginal propensity to consume and a larger multiplier. b. A larger marginal propensity to consume and a larger multiplier. c. A smaller marginal propensity to consume and a smaller multiplier. d. A smaller marginal propensity to save (MPS = 1 - MPC) and a smaller multiplier.
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 7SQ
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A flatter aggregate consumption function, if plotted on a graph with output on the horizontal axis and aggregate consumption on the vertical axis, would indicate which of the following:
Select one:
a.
A smaller marginal propensity to consume and a larger multiplier.
b.
A larger marginal propensity to consume and a larger multiplier.
c.
A smaller marginal propensity to consume and a smaller multiplier.
d.
A smaller marginal propensity to save (MPS = 1 - MPC) and a smaller multiplier.
Clear my choice
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