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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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

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Explanation