A Decrease in the Marginal Propensity to Spend Out of National

question 3

Multiple Choice

A decrease in the marginal propensity to spend out of national income will cause

• 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:

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