Explain higher debt levels would have the effect


When debt levels are very high, increases in the real interest rate have a larger effect on consumer spending, business investment, and net exports than they do when debt levels are much lower. As a result, higher debt levels would have the effect of:

a. Making the IS curve flatter.
b. Making the IS curve steeper.
c. Making the MP curve flatter.
d. Making the MP curve steeper.

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Microeconomics: Explain higher debt levels would have the effect
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