Based on Our Understanding of the Model Presented in Chapter

question 11

Multiple Choice

Based on our understanding of the model presented in Chapter 3,we know that a reduction in c₁ (where C = c₀ + c₁YD) will cause

• A)the ZZ line to become steeper and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• B)the ZZ line to become steeper and a given change in autonomous consumption (c₀)to have a larger effect on output.
• C)the ZZ line to become flatter and a given change in autonomous consumption (c₀)to have a smaller effect on output.
• D)the ZZ line to become flatter and a given change in autonomous consumption (c₀)to have a larger effect on output.