Consider the Simplest Macro Model with a Constant Price Level

Multiple Choice

Consider the simplest macro model with a constant price level and demand- determined output. In such a model, an upward shift of the saving function causes equilibrium national income to

A) remain constant but consist of more consumption and less investment.
B) fall because the AE function shifts downward simultaneously.
C) remain constant but consist of less consumption and more investment.
D) remain constant because it does not affect desired aggregate expenditure.
E) rise because the AE function shifts upward simultaneously.