Question 11 2 pts Compare two economies, which differ only in their share of credit-constrained households but are ident

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Question 11 2 Pts Compare Two Economies Which Differ Only In Their Share Of Credit Constrained Households But Are Ident 1 (85.58 KiB) Viewed 31 times

Question 11 2 pts Compare two economies, which differ only in their share of credit-constrained households but are identical otherwise. The MPC will be [Select] ^ in the economy with the greater proportion of credit-constrained households. Agents who do not have access to financial markets can not properly (Select ] their consumption, and so their consumption choices are [Select] responsive to changes in income. This means that the AD curve is going to be [Select] and the multiplier [ Select] in the country with the larger share of credit-constrained households.