Assume a Model of the Expenditure Sector with No Government

question 27

Multiple Choice

Assume a model of the expenditure sector with no government or foreign sector.If the savings function is defined as S = - 300 + (0.1) Y and autonomous investment increases by 200, by how much will consumption increase?

• A)180
• B)200
• C)1,800
• D)2,000
• E)2,100

---

Definitions:

Biological Reasons

Explanations for behavior or traits based on genetic, neurophysiological, and evolutionary factors.

Stress Disorder

A mental health condition characterized by severe anxiety, distress, or dysfunction resulting from overwhelming stress or traumatic events.

Central Nervous System

The brain and spinal cord.

Nerve Fibers

Long extensions of neurons that transmit electrical signals between the brain and other parts of the body.