Which of the Following Would Increase the Short- Run Output

question 68

Multiple Choice

Which of the following would increase the short- run output effects of a monetary expansion?

• A) A decrease in the marginal propensity to save.
• B) The slope of the IS curve is very flat.
• C) An increase in the marginal propensity to consume.
• D) An increase in the interest rate sensitivity of investment.
• E) All of the above.

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