Ceteris paribus,if income was transferred from individuals with a low MPC to those with a high MPC,aggregate demand would

Name: Ceteris paribus,if income was transferred from individuals with a low MPC to those with a high MPC,aggregate demand would
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Individuals with a higher MPC tend to spend a larger proportion of their income, thus transfer of income from low MPC individuals to high MPC individuals is likely to lead to an increase in aggregate demand as consumers are able to spend more.

Ceteris Paribus,if Income Was Transferred from Individuals with a Low