Increases in the Marginal Propensity to Consume (MPC),other Things Constant,_____

question 17

Multiple Choice

Increases in the marginal propensity to consume (MPC) ,other things constant,_____.

• A)increase the value of the multiplier
• B)decrease the value of the multiplier
• C)increase the marginal propensity to save
• D)shift the aggregate expenditure curve downward
• E)cause a downward movement along the aggregate expenditure curve

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Definitions:

Marginal Cost

The increase or decrease in the total cost of a production run for making one additional unit of an item.

Zero Marginal Cost

The situation when producing an additional unit of a good or service does not increase the total cost of production, often associated with digital products or services.

Pushcart

A small cart or wheeled vehicle typically used by vendors for selling goods in public places.

Output

The quantity of goods or services produced in a given period of time by a firm, industry, or country.