If Households Save $30 Billion More at Each Level of Income

Multiple Choice

If households save $30 billion more at each level of income and the marginal propensity to consume (MPC) is 0.9,the aggregate expenditure line will _____.

A) intersect the 45-degree line at a real GDP of $30 billion
B) shift upward by $30 billion
C) shift downward by $30 billion
D) shift upward by $300 billion because of the multiplier effect
E) shift downward by $300 billion because of the multiplier effect