Suppose There Is a Decrease in the Marginal Propensity to Spend

question 83

Multiple Choice

Suppose there is a decrease in the marginal propensity to spend out of national income.The result will be

• A)a movement to the right along the AE curve.
• B)a movement to the left along the AE curve.
• C)an increase in the slope of the AE curve,which rotates it upward.
• D)a decrease in the slope of the AE curve,which rotates it downward.
• E)a parallel downward shift in the AE curve.

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Definitions:

Ozone

A molecule composed of three oxygen atoms, known for its role in the Earth's stratosphere where it absorbs and protects living organisms from the sun's harmful ultraviolet radiation.

Resonance Structure

Different Lewis Dot Structures that represent the same molecule, indicating delocalized electrons within the molecule.

Nitrite Ion

A polyatomic ion with a chemical formula of NO2-, commonly found in some foods and the environment, and known for its role in biological processes.