Which of the following would lead to a rightward movement along the aggregate expenditure line rather than a shift of the line itself?
A) A reduction of the marginal propensity to consume
B) A decrease in income of $100 billion
C) An increase in income of $50 billion
D) An increase in the interest rate
E) A $50 billion decrease in autonomous consumption spending.

Question

Quizplus · Accepted Answer

A rightward movement along the aggregate expenditure line occurs when there is an increase in income, leading to higher consumption and expenditure, without changing the underlying factors that determine the position of the line itself.

Which of the Following Would Lead to a Rightward Movement