Higher marginal propensity to consume powerful tax policy

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Reference no: EM13839375

1. The higher the marginal propensity to consume the more powerful tax policy is to influencing consumption.

A) True

B) False

2. Negative real interests rates imply that if you save today, you can purchase a smaller basket of goods and services in the future, relative to the basket you could have comsumed today.

A) True

B) False

3. The slope of the investment demand function indicates how sensitive investment is to changes in real interest rates. The "flatter" the investment demand function, the less sensitive investment is to changes in the real rate of interest, all else constant.

A) True

B) False

Reference no: EM13839375

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