The Figure Above Shows Two Aggregate Expenditure Lines

question 45

Multiple Choice

The figure above shows two aggregate expenditure lines.
-In the figure above, if the marginal propensity to import increased, the aggregate expenditure lines would ________ and the multiplier would ________ in value.

• A) become steeper; rise
• B) become less steep; fall
• C) become less steep; rise
• D) not change; rise
• E) not change; fall

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Definitions:

Valuable Resources

Assets, both tangible and intangible, that are of significant worth and importance to an individual, organization, or society.

Hiring Minorities

The practice of recruiting and employing individuals from underrepresented groups based on race, ethnicity, or other minority status.

No-layoff Policy

A commitment from an organization not to terminate employment for economic reasons, aiming to provide job security for employees.

People-centered Practice

Approaches or practices in business or services that prioritize the needs, well-being, and perspectives of people involved.