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    Exam 11: Expenditure Multipliers
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    -In the Above Figure, If the Marginal Propensity to Consume
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-In the Above Figure, If the Marginal Propensity to Consume

Question 387

Question 387

Multiple Choice

  -In the above figure, if the marginal propensity to consume increases, the slope of the AE curve would A)  increase. B)  decrease. C)  stay the same but the AE curve would shift upwards. D)  stay the same but the AE curve would shift downwards.
-In the above figure, if the marginal propensity to consume increases, the slope of the AE curve would


A) increase.
B) decrease.
C) stay the same but the AE curve would shift upwards.
D) stay the same but the AE curve would shift downwards.

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