-In the Above Figure, If the Marginal Propensity to Consume

question 374

Multiple Choice

-In the above figure, if the marginal propensity to consume increases, the slope of the AE curve would

• A) increase.
• B) stay the same but the AE curve would shift downwards.
• C) decrease.
• D) stay the same but the AE curve would shift upwards.

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Definitions:

Gestation

The period of time between the conception and birth of an organism, often referring to pregnancy in humans.

Linear Model

A mathematical model that assumes a linear relationship between input variables (independent variables) and a single output variable (dependent variable).

Scatterplot

A scatterplot is a type of graph used in statistics to display the relationship between two numerical variables, with data points represented as dots in a two-dimensional space.

Data Set

A group of related information sets that consists of distinct parts yet can be managed as a single entity by a computer.