The Reason That an Increase in Autonomous Spending Leads to an Even

question 37

Multiple Choice

The reason that an increase in autonomous spending leads to an even greater increase in equilibrium level of output is that

• A)as firms increase output to meet demand, income increases, and this induces more consumption spending
• B)the multiplier increases with an increase in autonomous spending
• C)prices rise with increased output and this raises nominal GDP
• D)people save less as their income increases
• E)there is unwanted inventory accumulation, leading firms to lower prices and encouraging increased consumer spending

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Definitions:

Dignity-Conserving

Approaches or practices aimed at preserving the self-respect and worth of individuals, particularly in healthcare settings.

Thanatology

Study of death and dying.

Ancestors

Individuals from whom one is descended, often considered in the context of family lineage or evolutionary history.

Cultural Context

The set of social, historical, and cultural factors and norms that influence individuals' behaviors, perceptions, and interpretations of their environment.