FIGURE 22-4 Refer to Figure 22-4

Multiple Choice

FIGURE 22-4 Refer to Figure 22-4.The rotation from AE₀ to AE₁ implies that the marginal propensity to spend ________ and the value of the simple multiplier ________.

A) increases; decreases
B) increases; increases
C) remains the same; increases
D) decreases; increases
E) decreases,decreases