If the Marginal Propensity to Consume Increases

Multiple Choice

If the marginal propensity to consume increases,

A) firms will increase production.
B) spending will remain above output until interest rates increase and equilibrium is restored.
C) the expenditure line will shift upward in a parallel fashion.
D) investment will have to fall to restore equilibrium.
E) too much output is being produced, and firms will cut production until equilibrium is restored.