An Increase in the Marginal Propensity to Save from

question 7

Multiple Choice

An increase in the marginal propensity to save from .3 to .4 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.

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Definitions:

Olympic

Relating to the ancient or modern Olympic Games, a series of athletic competitions among representatives of various countries.

Aerobically

Pertaining to processes or activities that require the presence of oxygen, often used in the context of exercise or cellular metabolism.

Osteoporosis

A condition characterized by weakened bones, increasing the risk of fractures, commonly occurring in the elderly.

Rheumatoid Arthritis

A chronic inflammatory disorder that typically affects the small joints in hands and feet, involving painful swelling and potential joint deformity.