Multiple Choice
A rise in the marginal propensity to consume will:
(i) lower the slope of the consumption function.
(ii) increase the slope of the consumption function.
(iii) increase the level of equilibrium GDP.
(iv) shift the aggregate expenditure function upward.
A) (i) and (ii)
B) (ii) and (iii)
C) (i) and (iv)
D) (ii) and (iv)
Correct Answer:
Verified
Correct Answer:
Verified
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