Simplify. -

question 140

Multiple Choice

Simplify.
-

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Definitions:

Aggregate Expenditure Line

A visual depiction in macroeconomics illustrating the overall expenditures on goods and services within an economy across different income levels.

Marginal Propensity

The tendency of a person to spend an additional unit of currency; often relates to income in the context of marginal propensity to consume or save.

Simple Multiplier

The ratio used to estimate the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Marginal Propensity

The rate at which an individual, household, or economy is likely to consume (or save) with respect to an incremental increase in income.