FIGURE 21-3 Refer to Figure 21-3

question 136

Multiple Choice

FIGURE 21-3 Refer to Figure 21-3.A shift in the aggregate expenditure function from AE₀ to AE₁ could be caused by

• A)a rise in the multiplier.
• B)a fall in the marginal propensity to consume.
• C)a rise in the marginal propensity to consume.
• D)an increase in desired investment expenditures.
• E)a decrease in desired investment expenditures.

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Definitions:

Echoic Memory

A component of sensory memory that allows individuals to retain audio information for short periods after the original sounds have ended.

Iconic Memory

The visual sensory memory register pertaining to the visual domain and a fast-decaying store of visual information.

Sensory Memory

The shortest-term element of memory, allowing the retention of impressions of sensory information after the original stimuli have ended.

Working Memory

A mental system of restricted capability accountable for momentarily retaining data for processing purposes.