Let AE = Aggregate Expenditures, C = Consumption, I_P =

question 74

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment,
G =Government Purchases. Consider a simple aggregate expenditures model, where
AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. If the MPS is 0.4, then the multiplier is

• A) 1.33
• B) 2.5
• C) 5
• D) 15

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Definitions:

Cultural Evolution

The process by which cultural information and social practices are acquired, preserved, and transmitted across generations, leading to changes in behaviors, beliefs, and norms within a society.

Symbolic

Pertains to symbols or the use of symbols to represent ideas or qualities.

Recessive Alleles

Alleles that produce their characteristic phenotype only when two copies are present, as opposed to dominant alleles which can express with only one copy.

Phenotype

describes the observable characteristics or traits of an organism, resulting from the interaction of its genetic composition with the environment.