Question: A decrease in the marginal propensity to spend out of national income will cause Question 3 0 options: a parallel downward shift in the AE

A decrease in the marginal propensity to spend out of national income will cause
Question 30 options:
a parallel downward shift in the AE curve.
a decrease in the slope of the AE curve, which rotates it downward.
a movement to the right along the AE curve.
a movement to the left along the AE curve.
an increase in the slope of the AE curve, which rotates it upward.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!