Answer the following statement(s) true (T) or false (F)

1. Someone with a low marginal propensity to consume probably has a low marginal propensity to save.
2. Equilibrium in the aggregate expenditure model requires that aggregate expenditure equals income.
3. According to the aggregate expenditure model, when aggregate expenditure is greater than output, output decreases.
4. Politics can affect aggregate expenditure.
5. Accounting for investment, government purchases, and net exports increases the autonomous portion of aggregate expenditure.


1. False
2. True
3. False
4. True
5. True

Economics

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