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FIGURE 21-3 -Refer to Figure 21-3. a Shift in the Aggregate Expenditure

Question 48

Multiple Choice

  FIGURE 21-3 -Refer to Figure 21-3. A shift in the aggregate expenditure function downward from AE1 to AE0 could be caused by A)  a rise in the multiplier. B)  a fall in the marginal propensity to consume. C)  a rise in the marginal propensity to consume. D)  an increase in autonomous desired saving. E)  a decrease in autonomous desired saving. FIGURE 21-3
-Refer to Figure 21-3. A shift in the aggregate expenditure function downward from AE1 to AE0 could be caused by


A) a rise in the multiplier.
B) a fall in the marginal propensity to consume.
C) a rise in the marginal propensity to consume.
D) an increase in autonomous desired saving.
E) a decrease in autonomous desired saving.

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