FIGURE 21-3 Refer to Figure 21-3

Multiple Choice

FIGURE 21-3 Refer to Figure 21-3.If national income is Y₁ and the aggregate expenditure function is AE₁,then desired aggregate expenditure

A) exceeds income and income will rise.
B) exceeds income and income will fall.
C) is less than income and income will rise.
D) is equal to income and income will not change.
E) is less than income and income will fall.