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:

Terminal Relationship

A relationship that has ended or is nearing its conclusion, often used in the context of personal or business interactions.

Organisation Development

A planned, organization-wide effort to increase an organization's effectiveness and viability.

Interventions

Actions taken to improve a situation or address a problem.

Effectiveness

The degree to which something is successful in producing a desired result or outcome, often measured against predetermined objectives.