Which of the Following Events Would Cause the AE Function

question 65

Multiple Choice

Which of the following events would cause the AE function to shift upwards in a parallel way?

• A)a decrease in the net tax rate
• B)an increase in the MPC
• C)a decrease in foreign income
• D)a decrease in the aggregate price level
• E)a decrease in the business confidence of firms

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Definitions:

Projective Techniques

A method used in psychology to uncover the hidden emotions and attitudes of individuals through the interpretation of ambiguous stimuli.

Reliability

The consistency of response to a psychological assessment device.

Personality Assessment

The measurement of personal characteristics through tests and observations, often used to identify psychological traits or disorders.

Consistency

It refers to the degree to which a person's actions, beliefs, attitudes, and feelings remain the same over time or across situations.