In the IS Curve,consumption Is Represented as a Constant Fraction

question 11

Multiple Choice

In the IS curve,consumption is represented as a constant fraction of __________,and,therefore,is __________ than current output.

• A)potential output;more volatile
• B)potential output;smoother
• C)short-run fluctuations;smoother
• D)short-run fluctuations;more volatile
• E)none of the above

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