(Answered) If the aggregate expenditure function, AE = 30 + 0.7 Y, thus, Question 2AnswerA.Both answers are…

Question 2
If the aggregate expenditure function, AE = 30 + 0.7 Y, thus,
A.
Both answers are correct.
B.
The slope of the AE function = 0.7.
C.
The marginal propensity to spend equals 0.7.