Purchase Solution

IS curve

Not what you're looking for?

Ask Custom Question

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 ____.

Purchase this Solution
Solution Summary

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

Solution Preview

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

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Marginal Cost Curve in Firm's Supply Curve

    181535 Marginal Cost Curve in Firm's Supply Curve 6. What portion of the marginal cost curve is the competitive firm's supply curve? How is a competitive firm's marginal cost curve related to the market supply curve?

  • Equation of an Elastic Curve

    The slope is found by differentiating the elastic curve once. The slope at the end is found by differentiating the elastic curve once and substituting x=L. The relationships are given by the following equations.

  • Demand curve for fertilizer in the short run

    466424 Demand curve Tony's Lawn Service uses only one variable input, fertilizer. The firm's demand curve for fertilizer in the short run is the input's? a) total product curve. b) marginal product curve. c) marginal revenue product curve.

  • an indifference curve

    This means that the person's utility is the same on one indifference curve, and it does not matter if it is a "lower" point or "higher", because they are all "indifferent". Then what matters is the position of an indifference curve.

  • Normal Distributions and Curves

    (iv) Which curve is centered farthest to the left? (v) Which curve is the standard normal curve?

  • Marginal & Average Cost Curve

    Answer (C): If average costs are increasing, the marginal cost curve is above the average cost curve. This is because the marginal cost curve cuts the average cost curve at the trough of the average cost curve.

  • Shift and Movement of demand/supply curves

    A shift in demand curve is caused by change in any non-price determinant of demand. In such case quantity demanded changes even when price is constant.

  • Curvature of the curve and torsion of the curve

    This solution is comprised of a detailed explanation for finding the curvature of the curve and torsion of the curve.

  • Annual Demand and Supply

    It is Qs = 5000 + 100P (supply curve is upward sloping function i.e. positive sloped function) a. if A= 10,000 and I = 25,000 what is the demand curve - Demand curve is Qd = 5000 + 0.5I + 0.2A - 100P, where I is the income, A is advertising, and

  • Yield Curve Predictor

    A second option for investors is to invest in what's called a Treasury flattener. Investors purchase these special types of bonds only when there is a flat yield curve.

View More Related Solutions