Suppose Aggregate Output Is Demand-Determined

question 104

Multiple Choice

Suppose aggregate output is demand-determined.If the business community decreases its planned investment expenditures by $4 billion,causing equilibrium national income to fall by $8 billion,the marginal propensity to spend must be

• A)2/5.
• B)1/2.
• C)2/3.
• D)4/5.
• E)2.

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Definitions:

Visual Subsystems

Components of the visual system that process different aspects of vision, such as color, motion, and spatial orientation.

Binding Problem

The neurological challenge of explaining how disparate aspects of sensory information (such as color, shape, and location) are integrated into a unified perception.

Cohesive World

A perception or viewpoint in which elements of an environment or society are seen as interconnected and unified.

Serial Fashion

means performing tasks or processing information one step at a time, in a sequential order.