Could I get an answer to this question? Determine how the following affects the slope of the output demand curve, and explain your results: (a) The marginal propensity to consume increases

a. Marginal propensity to consumer (MPC) increases.

The marginal propensity to consume is the relationship between an individual salary and the rate of consumption. An increase in MPC leads more flat demand curve. If there is an increase in Marginal propensity to the consumer, the use will increase, thus increasing demand.

b. The inter-temporal substitution effect of the real interest rate on current consumption increases.

Inter-temporal is how the current individual decision affects future available options. The demand curve output will be flatter. The demand increases with a decrease in interest rate. An increase in inter-temporal substitutions leads to a reduction in interest rates, thus encouraging people to work to save for the future.

c. The demand for investment goods becomes less responsive to the real interest rate.

Investment goods are products that enable production and the primary key in any new business. The demand output curve will be steeper. People are not worried about the change in real interest rates.