Which of the Following Events Would Cause the AE Function

question 6

Multiple Choice

Which of the following events would cause the AE function to shift upwards in a parallel way?

• A)an increase in the MPC
• B)a decrease in the net tax rate
• C)a decrease in the business confidence of firms
• D)a decrease in foreign income
• E)a decrease in the aggregate price level

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Definitions:

Modulation

The process of varying the properties of a waveform to encode information, typically used in telecommunications to transmit data.

Decoding

The process of interpreting or making sense of a message or piece of information received.

Stream-of-consciousness

A narrative mode that attempts to capture the flow of thoughts and feelings running through the mind.

Spur-of-the moment

Actions or decisions made impulsively, without premeditation or planning.