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If the Marginal Propensity to Save Suddenly Increases, Then

Question 11

Multiple Choice

If the marginal propensity to save suddenly increases, then


A) the size of the fiscal policy multiplier will become larger
B) the size of the monetary policy multiplier will increase
C) the IS-curve will become steeper
D) the IS-curve will shift to the right and income will increase
E) income will increase but the interest rate will decrease

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