If output is above the level of spending balance, then A income will increase. В the marginal propensity to consume will increase. C the marginal propensity to consume will decrease. income will decrease

If output is above the level of spending balance, then A income will increase. В the marginal propensity to consume will increase. C the marginal propensity to consume will decrease. income will decrease

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter9: The Keynesian Model In Action

Section: Chapter Questions

Problem 8SQ

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Question

If output is above the level of spending balance, then
A
income will increase.
the marginal propensity to consume will increase.
C
the marginal propensity to consume will decrease.
income will decrease.

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