D Question 6 3 pts Fill in the blanks using the following words: higher, lower, steeper, flatter, smooth, increase, lower more, less. Compare two economies, which differ only in their share of credit-constrained households but are identical otherwise. The MPC will be in the economy with the greater proportion of credit-constrained households. Agents who do not have access to financial markets can not properly their consumption, and so their consumption choices are responsive to changes in income. This means that the AD curve is going to be in the country with the larger share of credit-constrained households. Question 7 3 pts On the basis of your comparison of the two economies in the previous question, would you expect the multiplier in an economy to vary over its business cycle? Edit View Insert Format Tools Table 12pt Paragraph