In the context of the IS-LM model, a higher marginal propensity to spend results in:
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UGC-NET 2025 Question 24: IS-LM model
Answer and worked solution
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IS-LM model has come up 137 times in 7 exams since 2004.
What this question tests
This question is on The slope of the IS curve, part of IS-LM model in Macroeconomics.
What makes the IS curve steep or flat, including the multiplier and the interest sensitivity of investment.
TestStop has 14 past-paper questions on this subtopic.
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