An Increase in the Marginal Propensity to Save from

Multiple Choice

An increase in the marginal propensity to save from .3 to .4 will cause

A) the ZZ line to become steeper and a given change in autonomous consumption (c₀) to have a smaller effect on output.
B) the ZZ line to become steeper and a given change in autonomous consumption (c₀) to have a larger effect on output.
C) the ZZ line to become flatter and a given change in autonomous consumption (c₀) ) to have a smaller effect on output.
D) the ZZ line to become flatter and a given change in autonomous consumption (c₀) to have a larger effect on output.