Question: Determine how the following affects the slope of the output

Determine how the following affects the slope of the output demand curve, and explain your results:
(a) The marginal propensity to consume increases.
(b) The intertemporal substitution effect of the real interest rate on current consumption increases.
(c) The demand for investment goods becomes less responsive to the real interest rate.


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  • CreatedDecember 05, 2014
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