Suppose That a Change in Consumer Preferences Leads to a $50

question 121

Multiple Choice

Suppose that a change in consumer preferences leads to a $50 billion decrease in net exports. JIf the value of the multiplier is 3, what is the size of the shift in the aggregate demand after
Jthe multiplier process works through the economy?

• A) $150 billion
• B) $100 billion
• C) Less than $50 billion
• D) Cannot be determined without information on exports

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Definitions:

Legal Owner

The individual or entity that holds valid title to property or assets, recognized by law.

Accessories

Items that add to the convenience or performance of the primary product, or in legal terms, individuals who assist in the commission of a crime.

Compulsive Personality

A personality trait characterized by a strong urge to perform certain actions repeatedly, often linked to obsessive-compulsive disorder.

Bone Spur

A bony growth formed on normal bone, often causing pain and discomfort when it rubs against tissues or nerves.