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Everything Else Remaining the Same, an Increase in the Marginal

Question 86

Multiple Choice

Everything else remaining the same, an increase in the marginal propensity to consume _______ the slope of the AE curve and _______ equilibrium expenditure.


A) decreases; decreases
B) increases; increases
C) increases; decreases
D) decreases; increases
E) does not change; does not change

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