6. Total planned expenditure (equals income) is 15,000, - cr = 600, the marginal propensi to consume is 0.6, government purchases are 3,000, taxes are 5,000 and planned investmen spending is 2,400. Net exports is 7. Which of the following variable will NOT shift the IS curve? A. government spending B. marginal propensity to consume C. responsiveness of net exports to the real interest rate D. all of the above E. none of the above

6. Total planned expenditure (equals income) is 15,000, - cr = 600, the marginal propensi to consume is 0.6, government purchases are 3,000, taxes are 5,000 and planned investmen spending is 2,400. Net exports is 7. Which of the following variable will NOT shift the IS curve? A. government spending B. marginal propensity to consume C. responsiveness of net exports to the real interest rate D. all of the above E. none of the above

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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