A change in which of the following changes the slope of the aggregate expenditure curve?
A) an increase in autonomous government expenditures
B) an increase in the marginal propensity to consume
C) a decrease in autonomous consumption expenditures
D) All of the above answers are correct because they all change the slope of the aggregate expenditure curve.

Question

Quizplus · Accepted Answer

The slope of the aggregate expenditure curve is determined by the marginal propensity to consume (MPC). An increase in the MPC increases the slope, while changes in autonomous expenditures shift the curve but do not affect its slope.

A Change in Which of the Following Changes the Slope