An Increase in the Marginal Propensity to Consume Would Cause

question 7

Multiple Choice

An increase in the marginal propensity to consume would cause the IS curve to

• A)make a parallel shift to the right.
• B)make a parallel shift to the left.
• C)rotate to become steeper from its vertical intercept.
• D)rotate to become flatter from its vertical intercept.
• E)rotate to become flatter from its horizontal intercept.

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