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A Decrease in the Marginal Propensity to Spend Out of National

Question 3

Multiple Choice

A decrease in the marginal propensity to spend out of national income will cause


A) a movement to the right along the AE curve.
B) a movement to the left along the AE curve.
C) an increase in the slope of the AE curve,which rotates it upward.
D) a decrease in the slope of the AE curve,which rotates it downward.
E) a parallel downward shift in the AE curve.

Correct Answer:

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