Suppose Aggregate Output Is Demand-Determined

question 88

Multiple Choice

Suppose aggregate output is demand-determined.If the simple multiplier is 4 and there is a $10 billion increase in planned investment spending,then equilibrium income will ________ and the marginal propensity to spend must equal ________.

• A)decrease by $40 billion; 0.75
• B)decrease by $10 billion; 0.25
• C)increase by $40 billion; 0.25
• D)increase by $40 billion; 0.75
• E)increase by $10 billion; 4.0

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Definitions:

Vulnerable Narcissism

A form of narcissism characterized by sensitivity to criticism, insecurity, and a defensive self-concept.

Narcissistic Personality Disorder

A psychological condition defined by a persistent tendency towards extreme narcissism, a desire for excessive admiration, and an absence of compassion.

Narcissistic Personality Disorder

A mental disorder characterized by a long-term pattern of exaggerated self-importance, the need for admiration, and a lack of empathy for others.

Cognitive Theorists

Scholars and researchers who study mental processes, including how people perceive, think, understand, and remember information.