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

question 90

Multiple Choice

Suppose that a change in consumer preferences leads to a $50 billion decrease in net exports.
If the value of the multiplier is 3, what is the size of the shift in the aggregate demand after
The 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:

Vertebral Column

The flexible and strong sequence of bones extending from the skull to the small of the back, protecting the spinal cord and enabling upright posture.

Axial

Relating to, or situated around, an axis; often describes body parts or anatomical structures aligned with the central axis of the body.

Occipital Bone

The bone that forms the back and base of the skull, and through which the spinal cord passes.

Sphenoid Bone

A complex bone at the base of the skull, which helps form the eye socket, the floors of the cranium, and the sides of the skull.