Consider Two Economies,A and B

question 29

Multiple Choice

Consider two economies,A and B.Economy A has a marginal propensity to consume of 0.9,a net tax rate of 0.3 and a marginal propensity to import of 0.3.Economy B has a marginal propensity to consume of 0.9,a net tax rate of 0.1 and a marginal propensity to import of 0.3.Suppose there is an increase in autonomous investment of $5 billion in each of these economies.Which of the following statements is true?

• A)The AD curve shifts farther to the left in Economy B than Economy A.
• B)The AD curve shifts farther to the right in Economy B than Economy A.
• C)The AD curve shifts to the left the same amount in both economies.
• D)The AD curve shifts to the right the same amount in both economies.
• E)The simple multiplier is larger in Economy A.

Understand the role of empirical reasoning in social science inquiry.

Comprehend the characteristics of sound arguments and conclusions in social science analysis.

Understand the fundamental differences between different types of calipers and their specific uses.

Comprehend the operational principles of disc and drum brakes, including their advantages and limitations.

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Definitions:

Amino Acid

Organic compounds that combine to form proteins, serving as the basic building blocks of life.

Glycogenolysis

The metabolic process of breaking down glycogen into glucose to be used as a source of energy by the body.

Beta Oxidation

A metabolic process in which fatty acid molecules are broken down in the mitochondria to generate acetyl-CoA, which enters the citric acid cycle, and NADH and FADH2, which are used in the electron transport chain.

Glucose

A straightforward sugar molecule that is critical for energy provision in living creatures and is incorporated into numerous carb compounds.