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Author Question: The IS curve becomes steeper when A) government spending is relatively small. B) the income tax ... (Read 22 times)

Charlie

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on: Jun 30, 2018
The IS curve becomes steeper when
 
  A) government spending is relatively small.
  B) the income tax rate in the current period is relatively small.
  C) current changes in the real interest rate cause large changes in current real output.
  D) changes in the current real interest rate cause small changes in current demand.
  E) none of the above

Question 2

The new term introduced in the extended IS-LM model is
 
  A) risk premium.
  B) nominal interest rate.
  C) taxes.
  D) G.


livaneabi

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


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