An increase in the propensity to consume will a. raise consumption spending. b. increase the demand for output. c. raise equilibrium output in the short run. d. all of the above.

The correct answer is "D. all of the above.".

Explanation: The marginal propensity to consume measures how much a person's consumption increases when their disposable income increases (the income they have after paying taxes) in a monetary unit, so an increase in this would cause a higher consumption, which would cause higher demand and would modify the equilibrium output.

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