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An Increase in the Marginal Propensity to Consume Will Tend

Question 2

Multiple Choice

An increase in the marginal propensity to consume will tend to cause:


A) the demand line to become flatter and a given change in investment to have a smaller effect on output.
B) the demand line to become steeper and a given change in investment to have a greater effect on output.
C) the demand line to become steeper and a given change in investment to have a smaller effect on output.
D) none of the above

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