When Autonomous Expenditure Increases, Equilibrium Aggregate Expenditure

question 52

Multiple Choice

When autonomous expenditure increases, equilibrium aggregate expenditure

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

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Definitions:

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.

Sexual Awareness

Consciousness or recognition of one's own sexual identity, preferences, and health.

Internal Locus

The belief that individuals have control over their life events and outcomes, as opposed to external forces.

Control

Control refers to the power to influence or direct people's behavior or the course of events.