If savings does not depend upon the interest rate, then a. the ...

[james0929]

If savings does not depend upon the interest rate, then
 
  a. the IS curve is vertical.
  b. the IS curve is horizontal.
  c. the LM curve is horizontal.
  d. the IS curve is still downward sloping.
  e. none of the above.

Question 2

The equation for the balanced budget multiplier can be written as
 
  a. (1/1  b)  (b/1  b).
  b. (1/1 + b) + ( b/1  b).
  c. (1/1  b) + (b/1 + b).
  d. (1/1 + b)  (b/1 + b).

[HandsomeMarc]

Answer to Question 1

D

Answer to Question 2

C