Suppose consumers decide to spend less of every dollar of income earned than previously spent.What would happen to the AE curve? Explain.

Name: Suppose consumers decide to spend less of every dollar of income earned than previously spent.What would happen to the AE curve? Explain.
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The Answer is The AE curve would get flatter.The amount of every dollar of income spent is the mpe,which is the slope of the AE curve.If the slope goes down,the curve gets flatter.

Suppose Consumers Decide to Spend Less of Every Dollar of Income