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

question 387

Multiple Choice

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

• A) increase.
• B) decrease.
• 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:

Social Organization

The patterned network of relationships and social interactions that define a society or a group within a society.

Norms

Shared rules or guidelines within a society or group that dictate appropriate and acceptable behaviors, values, and beliefs.

Prescriptive

Describes an approach or rule that indicates how things should be done, setting standards or norms for behavior.

Proscriptive

Relating to prohibitions or restrictions, especially in terms of rules or laws.