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

question 91

Multiple Choice

If households save $30 billion more at each level of income and the marginal propensity to consume (MPC) is 0.9,the aggregate expenditure line will _____.

• A)intersect the 45-degree line at a real GDP of $30 billion
• B)shift upward by $30 billion
• C)shift downward by $30 billion
• D)shift upward by $300 billion because of the multiplier effect
• E)shift downward by $300 billion because of the multiplier effect

---

Definitions:

Gestural Language

A form of non-verbal communication which uses bodily movements, especially of the hands and arms, to convey messages or symbols.

Vocal Tract

The anatomical structures of the throat and mouth that produce sound in speech and singing.

Same Set

Refers to a group of items, elements, or individuals that share identical characteristics or are categorized together based on common properties.

Rosetta Stone

An ancient Egyptian stone slab bearing inscriptions in multiple scripts that enabled the deciphering of Egyptian hieroglyphs.