FIGURE 21-3 -Refer to Figure 21-3.A shift in the aggregate expenditure function downward from AE₁ to AE₀ could be caused by A)a rise in the multiplier. B)a fall in the marginal propensity to consume. C)a rise in the marginal propensity to consume. D)an increase in autonomous desired saving. E)a decrease in autonomous desired saving.

Question

Quizplus · Accepted Answer

The Answer of FIGURE 21-3 -Refer to Figure 21-3.A shift in the aggregate expenditure function downward from AE₁ to AE₀ could be caused by A)a rise in the multiplier. B)a fall in the marginal propensity to consume. C)a rise in the marginal propensity to consume. D)an increase in autonomous desired saving. E)a decrease in autonomous desired saving.

FIGURE 21-3 -Refer to Figure 21-3.A Shift in the Aggregate Expenditure Function