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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Definitions:

Spanish Colonization

The period during which Spain conquered and established colonies in the Americas from the late 15th to the early 19th centuries, involving significant cultural, economic, and demographic changes.

Seventeenth Century

The period extending from the year 1601 to 1700, marking a time of significant historical events and developments globally.

White New England Settlers

White New England Settlers refers to the European immigrants, particularly from the British Isles, who established colonies in the northeastern part of what is now the United States during the 17th and 18th centuries.

Chesapeake

A region in the United States known for the Chesapeake Bay, significant for its history, ecology, and economy.