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

---

Definitions:

Ethnic Minority Status

Refers to the classification of individuals who belong to groups with distinct cultural, racial, or national backgrounds that are smaller in number compared to the majority population within a society or country.

SES

Short for Socioeconomic Status, which refers to an individual's or group's economic and social position in relation to others, based on income, education, and occupation.

Asian American

A person of Asian descent living in the United States, encompassing a wide range of cultures, languages, and backgrounds.

Special Stressors

Unique or specific sources of stress that affect individuals or groups differently, depending on their circumstances or stages in life.