Question 24 Determine whether each of the following statements about the income-expenditure model is true or false.? __________ A higher marginal propensity to save leads to a larger multiplier. __________ A sudden, unexpected decrease in consumption will lead to a fall in unplanned investment. __________ A higher/larger multiplier leads to a less stable economy. Question 25 Determine whether each of the following statements is true or false. __________ A fall in interest rate lowers the costs of borrowing, this encourages more investment and will cause a rightward shift in the demand for loanable funds curve. __________ In the income-expenditure model, inventories are often positive, suggesting that additions to inventory stocks are a long-run goal. __________ The interest rate effect of a change in the aggregate price level occurs when government borrowing in the loanable funds market causes interest rate to increase.