-In the Above Figure, If the Marginal Propensity to Consume

question 16

Multiple Choice

-In the above figure, if the marginal propensity to consume increases, the slope of the AE curve would

• A)decrease.
• B)increase.
• C)stay the same but the AE curve would shift upwards.
• D)stay the same but the AE curve would shift downwards.

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Definitions:

Microgram

A unit of mass in the metric system, equal to one-millionth of a gram.

Milliliters

A unit of volume in the metric system, equal to one thousandth of a liter or about 0.0338 fluid ounces.

Liter

A metric unit of volume equal to 1,000 milliliters or about 0.264 gallons.

Kilograms

A unit of mass in the metric system equal to 1,000 grams.