Answered: The slope of the IS curve is flatter…

The slope of the IS curve is flatter when... O a. the transfer payment multiplier is large O b. the marginal propensity to save is small O c. the aggregate supply is high O d. the tax rate is high

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 8PA

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Question

The slope of the IS curve is flatter when...
O a.
the transfer payment multiplier is large
O b. the marginal propensity to save is small
O c.
the aggregate supply is high
the tax rate is high
O d.

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