When Autonomous Expenditure Increases, Equilibrium Aggregate Expenditure

question 163

Multiple Choice

When autonomous expenditure increases, equilibrium aggregate expenditure

• A) increases by an equal amount.
• B) decreases by a greater amount due to the multiplier.
• C) decreases by an equal amount to offset the unplanned portion.
• D) increases by a greater amount due to the multiplier.

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Definitions:

Index Fund

A type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific market index by investing in the securities that compose the index.

Specialty Fund

A type of investment fund that focuses on specific sectors, regions, or investment strategies, differentiating it from broader market funds.

Moving Average

is a statistical technique used to analyze data points by creating a series of averages of different subsets of the full data set, commonly used in financial markets to identify trends.

Relative Strength Index

The Relative Strength Index (RSI) is a momentum oscillator used in technical analysis that measures the speed and change of price movements on a scale of 0 to 100, typically to identify overbought or oversold conditions.