The Slope of the Aggregate Expenditure Curve Increases When the Marginal

question 133

Multiple Choice

The slope of the aggregate expenditure curve increases when the marginal propensity to consume ________ or the marginal propensity to import ________.

• A) increases; decreases
• B) decreases; increases
• C) decreases; decreases
• D) increases; increases

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Definitions:

Long-term Financing

Funding obtained for a time frame exceeding one year in duration, typically used for acquiring or investing in assets that have a long useful life.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, and opportunity costs, impacting a company's financial performance.

Orders

Directions or commands given by authority, or customer requests for goods or services.

Revolving Line

A type of credit facility that allows a borrower to withdraw, repay, and re-borrow funds up to a specified credit limit.