The Slope of the AD-Curve Will Become Steeper If

question 21

Multiple Choice

The slope of the AD-curve will become steeper if

• A)money demand becomes more income inelastic
• B)money demand becomes more interest elastic
• C)investment becomes more interest elastic
• D)the income tax rate is decreased
• E)none of the above

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Definitions:

Obstinate

Showing stubbornness and refusal to change one's opinion or chosen course of action, despite attempts to persuade one to do so.

Stingy

Describing a person or behavior characterized by an unwillingness to spend money or use resources; being miserly or parsimonious.

Personal Unconscious

According to Carl Jung, the layer of the unconscious that houses material which is not within one's conscious awareness but is personal to the individual.

Repressed Thoughts

Unconscious defense mechanisms where distressing thoughts and memories are blocked from conscious awareness.