Macroeconomic Equilibrium Is Stable in the Simple Model Because

Multiple Choice

Macroeconomic equilibrium is stable in the simple model because

A) consumption falls more slowly than income when GDP is above equilibrium.
B) consumption increases more slowly than income when GDP is below equilibrium.
C) the marginal propensity to consume is less than unity.
D) taxes cause disposable income to move at some fraction of the pace at which GDP moves.
E) all of the above.