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    Exam 18: Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run
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    Because a Change in Consumer Spending Is Positively Related to a Change
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Because a Change in Consumer Spending Is Positively Related to a Change

Question 35

Question 35

Multiple Choice

Because a change in consumer spending is positively related to a change in income, the slope of the aggregate demand function is:


A) 0.
B) 1.
C) equal to the MPC.
D) equal to the marginal propensity to save.

Correct Answer:

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