Multiple Choice
If households save $30 billion more at each level of income and the MPC = 0.9,the aggregate expenditure line will
A) not be affected
B) shift upward by $30 billion
C) shift downward by $30 billion
D) shift upward by $300 billion because of the multiplier
E) shift downward by $300 billion because of the multiplier
Correct Answer:
Verified
Correct Answer:
Verified
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