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:

Conceptual Hierarchy

A system of classification where concepts are arranged in a hierarchical structure based on their complexity or inclusiveness.

Script

A sequence of expected behaviors for a given situation, often described in the context of cognitive psychology to understand how individuals act in social settings.

Mnemonic Device

A tool that aids in the retention and retrieval of information through association with something easy to remember.

Semantic Networks

Cognitive structures that use nodes representing concepts or instances linked together by relationships illustrating how these concepts or instances are related.