Multiple Choice
Suppose households save $30 billion more at each level of income, and the MPC = 0.9.How will the aggregate expenditure line be affected?
A) It will shift upward by $30 billion.
B) It will shift downward by $30 billion.
C) It will shift upward by $300 billion because of the multiplier.
D) It will shift downward by $300 billion because of the multiplier.
Correct Answer:

Verified
Correct Answer:
Verified
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