If households save $40 billion less at each level of income and the MPC = 0.8,the aggregate expenditure line will
A)not be affected
B)shift upward by $40 billion
C)shift downward by $40 billion
D)shift upward by $200 billion because of the multiplier
E)shift downward by $200 billion because of the multiplier

Question

Quizplus · Accepted Answer

The Answer of If households save $40 billion less at each level of income and the MPC = 0.8,the aggregate expenditure line will
A)not be affected
B)shift upward by $40 billion
C)shift downward by $40 billion
D)shift upward by $200 billion because of the multiplier
E)shift downward by $200 billion because of the multiplier

If Households Save $40 Billion Less at Each Level of Income