Multiple Choice
If households save $40 billion less at each level of income and the MPC = 0.8,the aggregate expenditure line will
A) not be affected
B) shift upward by $40 billion
C) shift downward by $40 billion
D) shift upward by $200 billion because of the multiplier
E) shift downward by $200 billion because of the multiplier
Correct Answer:
Verified
Correct Answer:
Verified
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