Asked by

Cristi Prado
on Nov 11, 2024

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In the simple aggregate expenditure model,the slope of the aggregate expenditure line depends on:

A) interest rates.
B) real gross domestic product.
C) the price level.
D) the marginal propensity to consume.
E) the marginal propensity to save.

Aggregate Expenditure

The total spending on final goods and services in an economy, including consumption, investment, government spending, and net exports.

Marginal Propensity

The tendency of an individual or household to spend an extra unit of currency, reflecting the change in consumption from a change in income.

  • Acquire knowledge on the fundamentals of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS).
  • Calculate and interpret the simple spending multiplier effect.
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michael quinonesNov 14, 2024
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