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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