Increases in the Marginal Propensity to Consume,other Things Constant

question 134

Multiple Choice

Increases in the marginal propensity to consume,other things constant,

• A)increase the value of the multiplier
• B)decrease the value of the multiplier
• C)never change the value of the multiplier
• D)shift the aggregate expenditure curve downward
• E)cause a downward movement along an aggregate expenditure curve

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Definitions:

Sellers' Costs

The expenses incurred by sellers in producing or procuring goods for sale, including materials, labor, and overhead costs.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply.

Minimum Price

Is the lowest price at which a product or service can be sold, often set by law or regulation to protect producers or consumers.