Suppose Households Save $30 Billion More at Each Level of Income

question 115

Multiple Choice

Suppose households save $30 billion more at each level of income, and the MPC = 0.9.How will the aggregate expenditure line be affected?  

• A) It will shift upward by $30 billion. 
• B) It will shift downward by $30 billion. 
• C) It will shift upward by $300 billion because of the multiplier. 
• D) It will shift downward by $300 billion because of the multiplier.

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Definitions:

Paradigmatic Perspectives

Ways of viewing or understanding phenomena based on established paradigms or frameworks, influencing how knowledge is constructed and interpreted.

Humanbecoming Perspective

An alternative formulation referring to Parse's humanbecoming school of thought, emphasizing the continuous process of becoming within the human experience.

Antithetical

Directly opposed or contrasted; embodying characteristics that are in stark opposition to each other.

Revealing-concealing

A process or mechanism in communication or analysis where certain information is disclosed while other information remains hidden.