The higher the marginal propensity to consume the

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27.The higher the marginal propensity to consume the more powerful tax policy is to influencing consumption.A) TrueB) FalseCorrect Answer(s):True
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28.According to the results of the estimated consumption function, consumption is more sensitive to changes in stock market wealth relative to changes in real estate wealth.
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29.The sensitivity parameter in the consumption function that measures how sensitive consumption is to changes in consumer confidence is referred to as the marginal propensity to consume.
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30.In a consumption function with income (Y) on the horizontal axis and consumption (C) on the vertical axis, a fallin the real rate of interest (all else constant) will cause a shift upward of the consumption function.
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31.In a consumption function with income (Y) on the horizontal axis and consumption (C) on the vertical axis, a rise in the price level (all else constant) will cause a shift upward of the consumption function.A) TrueB) FalseCorrect Answer(s):False
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32.A fall in tao, the effective tax rate on capital will result in the investment demand function shifting to the right.
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33.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.
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34.A rise in imports, all else constant, will increase net exports.
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35.If the US is growing faster than the rest of the world, then all else constant, the trade deficit will widen (get morenegative assuming we were running a trade deficit to begin with).A) TrueB) FalseCorrect Answer(s):True
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