If the Marginal Propensity to Consume Increases

question 115

Multiple Choice

If the marginal propensity to consume increases,

• A)firms will increase production.
• B)spending will remain above output until interest rates increase and equilibrium is restored.
• C)the expenditure line will shift upward in a parallel fashion.
• D)investment will have to fall to restore equilibrium.
• E)too much output is being produced, and firms will cut production until equilibrium is restored.

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Definitions:

Epigenetic Mark

Chemical modifications to DNA or histone proteins that affect gene expression without altering the DNA sequence.

Environmental Influence

Factors in an individual's surroundings that impact their development, behavior, and lifestyle.

Dizygotic Development

The biological process that leads to the birth of two fraternal twins from two separate eggs fertilized by two different sperm.

Dominate Genes

Genetic traits that are expressed in an organism's phenotype, overriding the expression of recessive genes when both are present.