FIGURE 22-4 -Refer to Figure 22-4.The rotation from AE₀ to AE₁ implies that the marginal propensity to spend ________ and the value of the simple multiplier ________. A)increases; decreases B)increases; increases C)remains the same; increases D)decreases; increases E)decreases,decreases

Question

Quizplus · Accepted Answer

The rotation from AE0 to AE1 suggests an increase in the slope of the aggregate expenditure line, indicating that the marginal propensity to spend has increased. Consequently, the value of the simple multiplier also increases.

FIGURE 22-4 -Refer to Figure 22-4.The Rotation from AE0 to AE1 Implies

FIGURE 22-4 -Refer to Figure 22-4.The Rotation from AE₀ to AE₁ Implies