The Slope of the Aggregate Expenditure (AE)function Is Always Equal

question 13

Multiple Choice

The slope of the aggregate expenditure (AE) function is always equal to the marginal propensity to

• A)save.
• B)invest.
• C)import.
• D)spend.
• E)tax.

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Definitions:

Reciprocity Norm

A social expectation that people will respond to each other in kind, repaying positive actions with positive actions and fostering mutual aid and cooperation.

Rule of Law

The idea that all individuals and organizations are accountable under laws that are impartially applied and enforced.

Belief in a Just World

The psychological concept that people get what they deserve and deserve what they get, which can affect attitudes toward victims and perpetrators in society.

Attractive Victims

Refers to victims who are perceived more sympathetically or favorably due to their physical appearance or charm.