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Category > Accounting Posted 25 Apr 2017 My Price 2.00

The marginal propensity to consume increases.

Determine how the following affects the slope of the output demand curve, and explain your results:

(a) The marginal propensity to consume increases.

(b) The intertemporal substitution effect of the real interest rate on current consumption increases.

(c) The demand for investment goods becomes less responsive to the real interest rate.

 

 

Answers

(8)
Status NEW Posted 25 Apr 2017 07:04 PM My Price 2.00

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file 1493148272-Answer.docx preview (109 words )
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