If Investment Increases by $200, and as a Result Income

question 116

Multiple Choice

If investment increases by $200, and as a result income increases by $800, then the

• A)multiplier is 3.
• B)slope of the AE curve is 1/4.
• C)multiplier is 1/4.
• D)slope of the AE curve is 0.75.
• E)marginal propensity to consume is 0.75.

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Definitions:

Beta-Adrenergic

Referring to receptors responsive to adrenaline and noradrenaline, involved in the fight or flight response.

Adrenergic Receptors

Proteins located on the surface of cells that are targets for adrenaline and noradrenaline, playing a crucial role in the body's response to stress and emergencies.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in regulating visceral functions, such as heart rate and blood pressure.

Muscarinic

Pertains to the type of acetylcholine receptors found in various locations in the body, playing significant roles in the function of the parasympathetic nervous system.