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Exhibit 23-5 -If Spending Was Equal to the Amount Corresponding to Point

Question 134

Multiple Choice

Exhibit 23-5 Exhibit 23-5 -If spending was equal to the amount corresponding to point B in Exhibit 23-5, A) aggregate output would increase. B) aggregate output would decrease. C) spending is too high, and the expenditure line will shift down. D) the economy would be in equilibrium. E) the marginal propensity to consume would increase.
-If spending was equal to the amount corresponding to point B in Exhibit 23-5,

A) aggregate output would increase.
B) aggregate output would decrease.
C) spending is too high, and the expenditure line will shift down.
D) the economy would be in equilibrium.
E) the marginal propensity to consume would increase.

Correct Answer: