If households save $30 billion more at each level of income and the MPC = 0.9,the aggregate expenditure line will
A)not be affected
B)shift upward by $30 billion
C)shift downward by $30 billion
D)shift upward by $300 billion because of the multiplier
E)shift downward by $300 billion because of the multiplier

Question

Quizplus · Accepted Answer

The Answer of If households save $30 billion more at each level of income and the MPC = 0.9,the aggregate expenditure line will
A)not be affected
B)shift upward by $30 billion
C)shift downward by $30 billion
D)shift upward by $300 billion because of the multiplier
E)shift downward by $300 billion because of the multiplier

If Households Save $30 Billion More at Each Level of Income