Suppose There Is an Increase in the Marginal Propensity to Spend

question 34

Multiple Choice

Suppose there is an increase 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.
• D)a decrease in the slope of the AE curve.
• E)a parallel upward shift in the AE curve.

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