An increase in the marginal propensity to _____will decrese the size of the expenditure multiplier (a) and therefore the IS curve will shift to the ____and become steeper. If people save more and spend less, firms will experience an increase in unintended inventories. Firms will respond by decresing production and national income will ____.© BrainMass Inc. brainmass.com October 10, 2019, 1:34 am ad1c9bdddf
An increase in the marginal propensity to SAVE will decrease the size of the ...
This solution will go through economic reactions within the context of expenditure multipliers.