Which One of the Following Will Lead to an Increase

question 143

Multiple Choice

Which one of the following will lead to an increase in the slope of the AE function?

• A)an increase in the marginal propensity to import
• B)an increase in the marginal tax rate
• C)a decrease in the marginal propensity to consume
• D)a decrease in the marginal propensity to save
• E)an increase in the marginal propensity to save

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