An Increase in the Marginal Propensity to Save Will Tend

question 226

Multiple Choice

An increase in the marginal propensity to save will tend to cause:

• A) the demand line to become flatter and a given change in investment to have a smaller effect on output.
• B) the demand line to become steeper and a given change in investment to have a smaller effect on output.
• C) the demand line to become flatter and a given change in investment to have a greater effect on output.
• D) none of the above

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