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

question 282

Multiple Choice

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

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

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Definitions:

Circadian

Relating to biological processes that display an endogenous, entrainable oscillation of about 24 hours.

Microsleep

A brief episode of sleep which may last for a second or two to a half-minute, occurring when someone is apparently awake and often goes unnoticed by the person experiencing it.

Threshold

The minimum level of stimulus intensity required for a sensation to be perceived or a response to be elicited.

Sleep Cycles

The progression through various stages of non-REM and REM sleep that repeats cyclically throughout a typical night's rest.