Suppose There Is an Increase in the Marginal Propensity to Spend

question 18

Multiple Choice

Suppose there is an increase in the marginal propensity to spend out of national income. The result will be

• A)a downward parallel shift in the AE curve.
• B)an increase in the slope of the AE curve.
• C)a movement up the AE curve.
• D)a movement down the AE curve.
• E)an upward parallel shift in the AE curve.

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Definitions:

Semicircular Canals

Three fluid-filled tubes in the inner ear that help maintain balance by detecting changes in head rotation and motion.

Liquid

A state of matter with a definite volume but no fixed shape, that flows and adapts to the shape of its container.

Rods And Cones

Specialized light-sensitive cells in the retina of the eye, where rods detect light intensity and cones are responsible for color vision.

Retina

Photoreceptor-containing layer of tissue in an eye.