The Aggregate Expenditure Curve Will Become Steeper If

question 162

Multiple Choice

The aggregate expenditure curve will become steeper if

• A)income tax rates are raised.
• B)firms expect an increase in future profit.
• C)income tax rates are lowered.
• D)people show an increased preference for foreign- made products.
• E)people become thriftier.

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Definitions:

Proactive Interference

The difficulty in learning new information because of the interference from existing similar information.

Retrieval Cue

A stimulus that helps a person recall or recognize stored information.

Interference

A hypothesized process of forgetting in which material is thought to be buried or otherwise displaced by other information but still exists somewhere in a memory store.

Long-term Memory

A type of memory responsible for storing information for extended periods of time, ranging from several minutes to a lifetime, and includes various forms such as episodic and semantic memory.