What would be the result of a decrease in autonomous saving?
A) an upward shift of the aggregate expenditure line
B) an upward shift of the 45-degree line
C) a decrease in the equilibrium level of real GDP demanded
D) an increase in the level of autonomous consumption

Question

What would be the result of a decrease in autonomous saving?  
A) an upward shift of the aggregate expenditure line 
B) an upward shift of the 45-degree line 
C) a decrease in the equilibrium level of real GDP demanded 
D) an increase in the level of autonomous consumption

Quizplus · Accepted Answer

A decrease in autonomous saving means that people are saving less and spending more. This will lead to an increase in aggregate expenditure, which will shift the aggregate expenditure line upward.

What Would Be the Result of a Decrease in Autonomous