A Decrease in Autonomous Consumption Will

question 220

Multiple Choice

A decrease in autonomous consumption will

• A) shift the aggregate expenditure function downward.
• B) decrease the marginal propensity to consume.
• C) change the slope of the aggregate expenditure curve
• D) decrease the marginal propensity to save.

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Definitions:

Population Growth

The increase in the number of individuals in a population, often discussed in the context of economic, social, and environmental implications.

Auto Production

The process and industries involved in the manufacturing and assembly of motor vehicles.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable by holding other relevant factors constant.

Income Increases

Situations or events that lead to a rise in the amount of money received by individuals or entities, potentially affecting consumption and saving behaviors.