Multiple Choice
An increase in government spending will:
A) shift the aggregate expenditure line upwards and decrease equilibrium output.
B) shift the aggregate expenditure line downwards and decrease equilibrium output.
C) shift the aggregate expenditure line downwards. and increase equilibrium output.
D) shift the aggregate expenditure line upwards and increase equilibrium output.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: The marginal propensity to consume is:<br>A) consumption
Q14: If the marginal propensity to consume is
Q15: In a closed economy with no government,
Q16: In an open economy, the marginal propensity
Q17: If the consumption function is C =
Q19: An increase in the price level will
Q20: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" -Refer to Table
Q21: A decrease in the government expenditures will:<br>A)
Q22: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" -Refer to Table
Q23: Suppose that the marginal propensity to consume