Other Things Equal, a Fall in the Marginal Propensity to Save

question 13

Multiple Choice

Other things equal, a fall in the marginal propensity to save will make the IS curve __________, and a rise in the responsiveness of short-term international financial capital To changes in the interest rate will make the BP curve __________.

• A) flatter of more elastic; flatter or more elastic
• B) flatter or more elastic; steeper or less elastic
• C) steeper or less elastic; flatter or more elastic
• D) steeper or less elastic; steeper or less elastic

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Definitions:

Inspiratory Capacity

The maximum amount of air a person can inhale after a normal exhalation, measuring lung function.

Vital Capacity

The greatest volume of air that can be forcefully exhaled from the lungs following a maximal inhalation, utilized to evaluate the condition of the respiratory system.

Prime Mover

The muscle or group of muscles primarily responsible for generating a specific movement.

Inspiration

The process of taking air into the lungs, a vital part of breathing.