FIGURE 21-3 Refer to Figure 21-3

question 4

Multiple Choice

FIGURE 21-3 Refer to Figure 21-3.Consider the simplest macro model with no government and no foreign trade,and the aggregate expenditure function AE = C + I.If there was zero autonomous expenditure and the marginal propensity to consume was equal to one,then the AE function would be

• A)steeper than the 45-degree line.
• B)above the 45-degree line at all points.
• C)below the 45-degree line at all points.
• D)coincident with the 45-degree line.
• E)flatter than the 45-degree line.

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Definitions:

Japan

An island nation in East Asia, known for its rich culture, technological advancements, and historic sites.

Big Five

A model in psychology that outlines five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Openness

Willingness to try new things and be open to new experiences or ideas.

Agreeableness

A personality trait in psychology that reflects the extent to which a person is cooperative, friendly, and compassionate toward others.