12- Considering the Simple Keynesian Model, which of the following is true? When the value of the marginal propensity to consume increases, the slope of the aggregate demand line does not change a) b) There is no relationship between autonomous investment expenditures and aggregate demand. c)O When the value of the marginal propensity to consume increases, the slope of the aggregate demand line decreases. d) O When autonomous investment expenditures increase, the aggregate demand line shifts to downwards in parallel. When autonomous investment expenditures increase, the aggregate demand line shifts to upwards in parallel. e)

12- Considering the Simple Keynesian Model, which of the following is true? When the value of the marginal propensity to consume increases, the slope of the aggregate demand line does not change a) b) There is no relationship between autonomous investment expenditures and aggregate demand. c)O When the value of the marginal propensity to consume increases, the slope of the aggregate demand line decreases. d) O When autonomous investment expenditures increase, the aggregate demand line shifts to downwards in parallel. When autonomous investment expenditures increase, the aggregate demand line shifts to upwards in parallel. e)

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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