If Investment Increases by $150 And, in Response, Equilibrium Expenditure

question 246

Multiple Choice

If investment increases by $150 and, in response, equilibrium expenditure rises by $600,

• A) the multiplier is 4.0.
• B) the slope of the AE curve is 3.0.
• C) the multiplier is 0.25.
• D) the MPC is 4.

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Definitions:

Mental Processes

The thoughts, feelings, and motives that people experience privately but that cannot be observed directly.

Hardware/Software

In computing, hardware refers to the physical components of a computer system, while software refers to the programs and operating systems that run on computers.

Evaluating Solutions

The process of assessing various options to solve a problem by comparing their potential impacts and feasibility.

Rethinking

The process of revising or reconsidering previously held beliefs, ideas, or strategies.