Question
If consumption spending becomes more sensitive to changes in the real interest rate, how will the slope of the IS curve be affected? a- IS
If consumption spending becomes more sensitive to changes in the real interest rate, how will the slope of the IS curve be affected?
a- IS curve will become steeper.
b- IS curve will become flatter.
c- Slope of the IS curve will be unaffected.
d- Slope of the IS curve may increase, decrease or remain the same depending on the amount of investment.
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
