When planned autonomous spending rises,the planned expenditure line
A)makes a parallel shift downward.
B)makes a parallel shift upward.
C)pivots upward from the vertical intercept.
D)pivots downward from the vertical intercept.

Question

Quizplus · Accepted Answer

Planned autonomous spending is the spending that does not depend on income or output level. When it increases, the total planned expenditure at each level of output will increase by the same amount. This leads to a parallel shift upward of the planned expenditure line, as the intercept on the vertical axis will increase by the amount of the increase in autonomous spending.

When Planned Autonomous Spending Rises,the Planned Expenditure Line