An Increase in the Marginal Propensity to Import Will Cause

question 14

Multiple Choice

An increase in the marginal propensity to import will cause

• A) the ZZ line to become flatter and a given change in government spending (G)to have a larger effect on domestic output.
• B)the ZZ line to become flatter and a given change in government spending (G)to have a smaller effect on domestic output.
• C)the ZZ line to become steeper and a given change in government spending (G)to have a larger effect on domestic output.
• D)the ZZ line to become steeper and a given change in government spending (G)to have a smaller effect on domestic output.

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