If Households Save $40 Billion Less at Each Level of Income

question 40

Multiple Choice

If households save $40 billion less at each level of income and the MPC = 0.8,the aggregate expenditure line will

• A)not be affected
• B)shift upward by $40 billion
• C)shift downward by $40 billion
• D)shift upward by $200 billion because of the multiplier
• E)shift downward by $200 billion because of the multiplier

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Definitions:

Criticism

The practice of analyzing, evaluating, or judging the merits and faults of a work, policy, or idea.

Canada

A country in North America, characterized by its vast landscape, multicultural population, and as having a parliamentary democracy and a constitutional monarchy.

Population Transfer

The forced movement of a large group of people from one region to another, often used as a tool for political or social engineering.

Expulsion

The act of formally removing someone from an organization, institution, or country.