The Figure Given Below Shows the Aggregate Expenditures Function of an Economy.?Figure

Multiple Choice

The figure given below shows the aggregate expenditures function of an economy.?Figure 9.5

-Refer to figure 9.5. The slope of the aggregate expenditures function (AE) is flatter than the C+I+G function because:

A) the marginal propensity to consume is ususally less than 1.
B) the marginal propensity to import is greater than 1.
C) the slope of the net exports function is negative.
D) investment(I) and government spending(G) are assumed to be autonomous.
E) there is a leakage from the aggregate expenditures function in the form of savings.