A Rise in the Marginal Propensity to Consume

Multiple Choice

A rise in the marginal propensity to consume:
(i) shifts the aggregate expenditure function downward.
(ii) implies a fall in the proportion of income people save when their incomes change.
(iii) will decrease the level of equilibrium GDP.
(iv) will increase the slope of the aggregate expenditure function.

A) (i) and (ii)
B) (ii) and (iii)
C) (i) and (iv)
D) (ii) and (iv)