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

question 54

Multiple Choice

If households save $30 billion more at each level of income and the MPC = 0.9,the aggregate expenditure line will

• A)not be affected
• B)shift upward by $30 billion
• C)shift downward by $30 billion
• D)shift upward by $300 billion because of the multiplier
• E)shift downward by $300 billion because of the multiplier

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