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    IS curve

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    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 ____.

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    https://brainmass.com/economics/expenditure-multipliers/economic-reactions-340161

    Solution Preview

    An increase in the marginal propensity to SAVE will decrease the size of the ...

    Solution Summary

    This solution will go through economic reactions within the context of expenditure multipliers.

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