Multiple Choice
If the price level increases,other things constant,consumption spending
A) increases because real income rises
B) decreases because real income rises
C) increases because the real value of wealth increases
D) decreases because the real value of wealth decreases
E) increases because nominal income increases
Correct Answer:
Verified
Correct Answer:
Verified
Q12: What is the effect of an increase
Q13: If the price level decreases,<br>A)the aggregate expenditures
Q14: If the marginal propensity to consume is
Q15: The slope of the aggregate expenditure line
Q18: The economy will expand if<br>A)leakages exceed injections<br>B)injections
Q19: At the equilibrium level of real GDP,unplanned
Q20: A decrease in the price level will<br>A)shift
Q21: If an increase in planned investment of
Q22: An increase in the price level will<br>A)shift
Q146: The smaller the marginal propensity to save,other