Suppose Aggregate Output Is Demand- Determined

question 93

Multiple Choice

Suppose aggregate output is demand- determined. If the business community decreases its planned investment expenditures by $4 billion, causing equilibrium national income to fall by $8 billion, the marginal propensity to spend must be

• A)2/5.
• B)1/3.
• C)1/2.
• D)2/3.
• E)4/5.

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Definitions:

Transduction

The process by which sensory signals are transformed into electrical or neural signals in the body.

Adaptation

The process by which a living organism adjusts to its environment or changes in its environment, including both physical and psychological adjustments.

Transformation

Transformation refers to a thorough or dramatic change in form, appearance, or character, often implying a significant shift or evolution.

Ganglion Cells

In the context of the nervous system, ganglion cells refer to a type of neuron located in the retina that receives visual information from photoreceptors via intermediate bipolar cells and transmits it to the brain.