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:

Seconal

A brand name for secobarbital, a barbiturate used as a sedative and hypnotic medication.

Drug Tolerance

A state where an individual's reaction to a drug decreases with its continued use, leading to the need for higher doses to achieve the same effect.

Dependency

A state of relying on or being controlled by something or someone else for support or existence.

Pseudoinsomnia

A sleep disorder in which an individual believes they have not slept, despite evidence of normal sleep patterns.